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WINTER 2017

1Winter 2017 I Across Borders I

Contents02 TradeAgendaProvidesNewOpportunitiesFor AustralianExporters

04 AnewallianceforAustralianfreight&tradesectors

06 GlobalShippersForumannualconference

08 AustralianTrustedTraderProgramme

10 GSTontheimportationofgoods

14 TheGood,BadandUglyofthedelaytotheGST LowValueGoodsBill

18 Biosecurityreformsrespondtochangingglobal tradeenvironment

20 TheWTOTradeFacilitationAgreement

21 Customisedandcosteffectiveprojectcargo solutions

22 Membersturnoutinrecordnumberstoensure compliance

24 OldBlightyLeavestheEU:opportunitiesandrisks fortheTransport&Logisticssector

26 Safety&Security:It’sAllAboutCargoIntegrity

28 ChangestoUSaircargoscreeningrequirements– areyouready?

30 KnownConsignorbenefitsfromMarinova(an approvedKnownConsignor)

32 Thecourtcaseswehavetohave

34 Freight&TradeAlliance(FTA)appointsnew preferredpartnerforForeignExchangeservices

35 $6mupgradeatcargoparkopensdoorsforfreight operators

36 HowAutomatedVehiclesWillTransformFreight LogisticsinAustralia

37 Thepoweroftwo–intuitivesoftwareandpersonal service

38 A.H.BeardaFourthGenerationFamilyOwned& ProudlyAustralianCompany

40 MoorebankLogisticsPark

42 Asbestosimports

68 Brooker Avenue Beacon Hill NSW 2100 T: 02 99751878 E: [email protected] www.FTAlliance.com.au

Across Boards is published by Freight & Trade Alliance (FTA)

Across Borders is produced by Ontime Publications. For advertis-ing rates please contact Steve Moxey on 0400 473 200

WINTER 2017

bordersAcross

Welcome to “Across Borders”Weareproudtolaunch“AcrossBorders”withthefirsteditionofournewseasonal(Winter,Spring,SummerandAutumn)publication.

WewouldliketoexpressoursincereappreciationtotheHon.StevenCiobo,MinisterforTrade,TourismandInvestment,allofthegovernmentdepartmentsandtopicexpertsfortheircontributionstothepublication.

Ashighlightedinthechairman’sreport,Freight&TradeAlliance(FTA)andtheAustralianPeakShippersAssociation(APSA)haveestablishedaninfluentialadvocacyalliancesupportingtheinternationaltradeandfreightlogisticssectors.

“AcrossBorders”willplayavitalroleinkeepingourmembershipattheforefrontofallemergingsupplychainissuestocomplementourongoingresponsiveoperationalsupport,professionaldevelopmenttraining,industryupdates,commercialservicesandcorporateevents.

Wetrustthatyouwillfindthepublicationinformativeandlookforwardtoreceivingyourcontributionsandfeedbackforfutureeditionsof“AcrossBorders”.

By Paul Zalai, Director and co-founder, Freight & Trade alliance (FTa) & Secretariat to australian Peak Shippers association (aPSa)

Front cover – image courtesy of Victoria International Container Terminal - Webb Dock East, Melbourne, Victoria

2 I Winter 2017 I Across Borders

Australiaiscurrentlyinits26thconsecutiveyearofeconomicgrowth:goodsandservicesexportshaverisen7.6percentinrealterms,andnetexportscontributed1.4%pointstoour2.4%annualgrowthinrealGDPin2016.Internationaltradeandinvestmentwillplayasignificantroleinextendingintothefuturethisrecordperiodofgrowthforournation.TheTurnbullGovernmentispursuinganambitiousagendatomaximisetheopportunitiesofferedbynewandimprovedmarketaccessforAustralianproductsandservices.Asreadersherewillknow,exportingbusinessesnotonlyemploymorepeopleonaverage,thosejobsalsoarebetterpaying.Increasedtradeandnewforeigncapitaliscrucialifwearetomaintainthehighstandardoflivingwehavecometoenjoyandexpect.InMay,theTurnbullGovernmentlaunchedFTAnegotiationswithHongKongandPeru.EachagreementhasaslightlydifferentemphasisandwilldeliverdifferentwinsforAustralianbusinesses.HongKongisamajorexportmarketforAustraliangoodsaswellasservices.AmodernFTAwithHongKongisavaluableopportunitytocompletea21stcenturydealthatincreasesservicesaccessforAustraliancompaniesandsupportsgrowthofthedigitaleconomy.Inaddition,theagreementwouldcomplementourexistingFTAwithChina,anddeepenoureconomicintegrationinAsiaOverthelastdecade,PeruhasbeenoneofthefastestgrowingeconomiesinLatinAmerica,andtheworld.AnFTA

withPeruwillhelpAustralianexporterscompetewithotherexportersliketheUS,theEUandCanadainthisgrowingmarket.ItwouldprovideanothergatewaytotheLatinAmericanmarketandenableAustralianbusinessestotapintovaluechainsbetweentheAmericasandAsia.AnFTAwithPeruwouldalsobeasteptowardscapturingthebenefitsoftheTrans-PacificPartnership(TPP).AdditionallytheTurnbullGovernmentisgettingclosertoconcludingtheIndonesia-AustraliaComprehensiveEconomicPartnershipAgreement(IA-CEPA).IA-CEPAhasthepotentialtoopenanewerainoureconomicrelationshipwithIndonesia.FTAnegotiationswiththeEuropeanUnion(EU)willcommencelaterthisyear.Asabloccomprisingmorethan500millionpeople,theEUisAustralia’slargestsourceofforeigninvestmentandsecondlargesttradingpartner.Acomprehensiveandhigh-qualityAustralia-EUFTAwillremoveandreducebarriersforourgoodsandservicesexports,promoteinvestmentties,andenhanceregulatorycooperation.TheTurnbullGovernmentisalsofocusedonpursuingnewregionaltradeandinvestmentopportunities.FollowingtheUnitedStates’decisiontowithdrawfromtheTPP,theremaining11membersrecentlyagreedonthevalueofrealisingtheagreement’sbenefitsandagreedtoassessoptionsforbringingtheagreementintoforceexpeditiously.WorkisalsoprogressingonaRegionalComprehensiveEconomicPartnership(RCEP)involvingAustralia,ASEAN,Australia,China,India,Japan,Koreaand

Trade agenda Provides New Opportunities For australian Exporters

By ThE hON STEvEN CiOBO, Minister for Trade, Tourism and investment

CongratulationstotheteamatAcrossBordersonthisnewpublicationandbestwishestoallyourreaders,includingmembersoftheFreight&TradeAllianceandAustralianPeakShippersAssociationInc.

MINISTERIAL ADDRESS

The Turnbull Government is

pursuing an ambitious agenda to maximise

the opportunities offered by new and

improved market access for Australian

products and services.


NewZealand.RCEPhasthepotentialtodelivernewcommercialopportunitiesintheregionforAustralianbusinessesandinvestorsandsupportregionalvaluechains.

InApril,Australia,NZand12PacificIslandcountriesconcludedregionalnegotiationsonthePacificAgreementonCloserEconomicRelations(PACER)Plus.ThisisauniquetradeanddevelopmentagreementthathasthepotentialtoreshapetheeconomicfundamentalsofthePacificregionbycreatingnewopportunitiesfortradeandinvestment.

TheTurnbullGovernmentisalsoactivelysupportingeffortstostrengthenthemultilateraltradingsystemandispursuingasuccessfuloutcomefromthe11thWorldTradeOrganisationMinisterialMeetinginArgentinalaterthisyear.WealsocontinuetofindopportunitiestobuildonourexistingFTAsincludingsignificantlyexpanding

theSingapore-AustraliaFreeTradeAgreementandsecuringChina’sagreementinMarchtocommencereviewsoftheservicesandinvestmentelementsofourbilateralfreetradeagreementbytheendoftheyear.

EnsuringAustralianbusinesseshavetheinformationtheyneedtoaccessthebenefitscreatedbytradeagreementsisakeypriorityfortheTurnbullGovernment.WehavecreatedtheFTAPortal-https://ftaportal.dfat.gov.au/-afreeweb-basedtool,toprovidepracticalanduser-friendlyinformationtoAustralianswantingtotakeadvantageoftheopportunitiesprovidedbyourFTAs.

WearealsocommittedtomakingiteasierforAustraliantraders.TheTurnbullGovernmentisworkingtowardsestablishingasinglewindowfortrading,whichwillprovideAustralianbusinesseswithasimplepointtoengagewithgovernmentthroughtheexportandimportingprocess.

TheTurnbullGovernmentcontinuestopursuethepoliciesthatsupporteconomicgrowthandcreatebetterpayingjobs.Endowedwithhighlycompetitiveindustriesandasmallpopulation,itisinournationalinteresttoactivelyseeknewmarketsforAustralianexporters.

Itakethisopportunitytowishyoueverysuccessgrowingyourbusinessesathomeandabroad.

Steven Ciobo is the Minister for Trade, Tourism and Investment. This is Mr Ciobo’s third front bench role in the foreign affairs and trade portfolio. He has previously served as the Minister for International Development and the Pacific, and Parliamentary Secretary to the Minister for Foreign Affairs and Parliamentary Secretary to the Minister for Trade and Investment.

Thisisauniqueopportunitytohostyourclientsatthisinformativeeventaddressing:

• keydevelopmentsinrelationtotheAustralianTrustedTraderProgram

• port/logisticsreforms

• positiveeffectsofgenderequalityandworkplacediversitywithintheworkplace.

on ore t e o nc e reco n t on o o r co n on t e ro r n t e n e nc t

Sneha Chatter ee Chief Superintendent

australian Trusted Trader australian Border Force

Libby Lyons Director

Workplace gender Equality agency

Paul Scurrah CEO

DP World

Wo m e n I n L o g i s t i c s – W I L

Freight & Trade Alliance & WISTA Annual Women In Logistics Forum

Featuring presenters

Inspire, Learn & Network ......Date: Wednesday26July2017

Time: 2.00pmto5.00pm(Registrationfrom1.45pm)

Tickets: FTA/APSAMembers $99 (incl. gst)andNon-members $110 (incl. gst)Venue: StamfordHotel,Mascot(Sydney)

Catering: Champagneandlightlunch

To register please contact Caroline alai on c alai ftalliance.com.au or 02 9975 1878


TheAustralianPeakShippersAssociation(APSA)hasbeentheleadpeakbodyrepresentingAustralianshippersformorethan25years.Inthattime,wehaveseenincrediblechangeinthemarket:theslowdisappearanceofAustralia’scontainertradingfleet,theprivatisationofourportsandaglutofnewsurchargesandcostsfacedbyourexporters.Buttherehavebeenseveralpositivedevelopmentswealsomustacknowledge:FreeTradeAgreementsdeliveringdutyrelief,theAustralianTrustedTraderreducingbarrierstotradeand,mostimportantly,aGovernmentthatisengagedandinterestedinshipperissues.

Itisanexcitingtimeforourindustryandshippinghasneverbeenmorecriticaltoournation’seconomicsuccess.

SecretariatOn1January2017,APSAenteredanewera,commencingafive-yearpartnershipwithFreight&TradeAlliance(FTA),Australia’slargestinternationaltradeandlogisticsrepresentativegroup.WhileAPSAhasretaineditsindependentstatusandidentity,wearedelightedtohavethesupportoftheFTAteaminhelpingusachieveouradvocacygoals.TheAssociationwouldliketothankandcongratulate,PaulZalai,CarolineZalaiandTravisBrooks-Garrett,asthenewSecretariatteamfortheAssociation.

WewouldalsoliketoacknowledgethecontributionofRobertCoode,whohadacelebrated40-yearcareerwithMurray-GoulburnandwhohasledAPSAasExecutivePresidentforthelastfiveyears.RobertledthechargeinmanykeyadvocacyactionsincludingtheDPWorldrentalincreasedispute,theprivatisationofthePortofMelbourneandCoastalShippingreform.TheAssociationiseternallygratefulforhisefforts.WhileRoberthassteppeddownfromthe

ExecutivePresidentrole,hehasbeenretainedbythecurrentadministrationandwillcontinuetoplayarole.

ExecutiveDuringtheAPSABoardmeetingon24May2017,theexecutiveunanimouslyacceptedthenominationofSeanRichards,ExecutiveGeneralManager-LogisticsforVisyIndustries,andEimearMcDonagh,DirectoroftheAustralianCottonShippersAssociation(ACSA),tojointheboardcommencing24May2017.

SeanRichardsreplacesGoranMiljanicastheVisyIndustriesrepresentativeontheBoard.Visy,asAustralia’slargestcontainerisedexporterbyvolume,willcontinueplayingacentralroleinthe

directionoftheAssociationunderSean’sleadership.

TheappointmentoftheAustralianCottonShippersAssociationtotheAPSAboardisamovetobringthetwoorganisationsclosertogether,withafocusonadvocacyactivitiesandreflectstheimportanceofthecottonindustryasagrowingexportcommodityatatimeofincreasinginternationalsupplychaincosts.

TheBoardmeetingalsosawtheappointmentofDominicDillon,TradeExecutionManagerforCargill,asthenewTreasurerfortheAssociation.

MembershipCoincidingwiththenewSecretariatandExecutivestructurewehavebeenfortunatetobejoinedbynewmembersthisyearincludingMondelez,EmeraldGrain,CHBroadbent,CasellaFamilyWines,theHorticulturalExportersAssociation,AHBeardandFlindersPorts.

APSAnowrepresentsmorethan550,000TEUonexportsannuallyandcontinuestogrow.WelookforwardtocontinuingtorepresentAustralia’sshipperstothehighestlevelsofGovernment.ItismoreimportantthaneverthatAustralianshipperscancontainthecostsoftrade,whilehavingthebestpossibleaccesstooverseasmarkets.

[email protected]

a new alliance for australian freight & trade sectors

By Paul BlakE, Chairman, australian Peak Shippers association

Caroline Zalai, Paul Zalai, Travis Brooks-Garrett, Robert Coode and Paul Blake

EXECUTIVE REPORT


SCREENING REQUIREMENTS FOR US-BOUND AIR CARGO AFTER 1 JULY 2017After 1 July 2017, all US-bound air cargo exports will need to be examined at piece level or originate from a Known Consignor. These requirements have been imposed on airlines by the US Government. The Australian Government has been working with Australian businesses to help them comply with these US requirements.

HOW CAN EXPORTERS COMPLY WITH THE US REQUIREMENTS? Businesses exporting to the US by air have two options to meet the US requirements:

1. Using an Australian Government-approved freight agent who can examine US-bound air cargo. A list of these agents can be viewed on the department’s webpage listed below.

2. Being approved as a Known Consignor to secure air cargo at the point of origin in order to minimise potential delays and costs. You can begin the process of being approved as a Known Consignor on the department’s webpage listed below.

HOW CAN FREIGHT FORWARDERS COMPLY WITH THE US REQUIREMENTS? Freight forwarders will need to arrange to examine all US-bound air cargo at piece level if their customer is not a Known Consignor.

WHAT DOES PIECE LEVEL MEAN? Piece-level means that each individual box, carton or other item in a shipment is examined by an X-ray machine or metal detector, depending on the nature of the item being examined, before it is loaded onto an aircraft.

WHAT IF I HAVEN’T SECURED A SOLUTION FOR MY US-BOUND AIR CARGO?If you are an exporter who has not yet secured a solution for your US-bound air cargo, a list of freight agents who can examine cargo at a piece level is available on the department’s webpage listed below.If your freight agent is not on this list, they will not be able to examine cargo at piece level.

If you are a freight forwarder, exporters of US-bound air cargo who have not secured a solution may need your help. It is your responsibility to put in place contingency arrangements to avoid disruption to your customers’ business.

If you are not examining US-bound air cargo yourself, a list of approved freight agents can be found on the department’s webpage listed below.

WHERE CAN I LEARN MORE?

A D V E R T I S E M E N T

W https://infrastructure.gov.au/security/air-cargo/us-bound-air-cargo-security-arrangements.aspx

E [email protected]!T 1300 791 581 (9am to 5pm weekdays)


TheAustralianPeakShippersAssociation(APSA)andFreight&TradeAlliance(FTA)aredelightedtoannouncethehostingoftheGlobalShippersForumannualconference-“GSF2018”

Theworld’smostseniorgatheringofshippersandlogisticsproviderswillbemeetinginMelbourneon8to11May2018todiscusstradefacilitation,internationallogisticschallengesandothermacro-trendsaffectingglobaltrade.TheeventwillbeheldaspartofMEGATRANS2018,Australia’sleadinglogisticsandsupplychainevent.

TheGlobalShippersForum(GSF),basedinLondon,istheworld’sleadingtradeassociationforshippersengagedininternationaltrademovinggoodsbyallmodesoftransport.TheGSFrepresentsshippersinterestsinthemajorUNagenciesincludingtheInternationalMaritimeOrganisation(IMO),InternationalCivilAviationOrganisation(ICAO),InternationalLabourOrganisation(ILO)andtheWorldCustomsOrganisation(WCO).

Theirrolecentresoninternationallogisticspolicy.

ChrisWelshMBE,theGSFSecretary-General,notedMelbourne’scredentialsasahostcity“weareexcitedabouttheprospectofholdingthe2018meetinginMelbourne.ThiswillaffordtheopportunityofconnectingwithmembersinAustralasiaonissuesofconcernwithintheAsiaPacificregionandinternationally”.

THE FIRST TIME THE EVENT HAS BEEN HELD IN AUSTRALASIA TheeventwillbecuratedbyAustralia’srepresentativetotheGlobalShippersForum,theAustralianPeakShippersAssociation(APSA),anassociationrepresentingAustralia’stopcontainerisedexportersbyvolume–pleaserefertothemembershipatwww.ftalliance.com.au

PaulBlake,theAPSAChairmancommented“thisisaonceinalifetimeopportunityforAustralianimporters,exportersandlogisticsproviders,tobeattheforefrontofglobalpolicyandcomplianceissues.APSAhasrepresentedAustralia’sshipperssince1992andweareproudtobeabletohosttheglobaltradecommunityforthisevent.”

MelbournesecuredtherightswiththesupportoftheVictorianGovernment’sMelbourneConventionBureauandprivatesectorsponsorthePortofMelbourne.Itwillattracthundredsoflocalandinternationaldelegates,includingrepresentativesfrominter-governmentalorganisations,onceagaindemonstratingMelbourne’scredentialsasadestinationofchoiceforglobalbusinessevents.

FREIGHT & TRADE SECTORSThisisaonceinalifetimeopportunityforAustralianimporters,exportersandlogisticsproviderstocometogethertobeattheforefrontofglobalpolicyand

complianceissues.

ACCREDITATION

SessionsthatmeetcriteriaasprescribedbytheDepartmentofImmigrationandBorderProtectionwillbeaccreditedforAustralianlicencedcustomsbrokerContinuedProfessionalDevelopment(CPD)points.

PROGRAM

TheAPSA/FTAGSF2018sub-committeewilldeliverafirstclassprogramblendingaglobalgovernanceagendawithaPanPacific/Asianregionalfocus.

CommitteerepresentativesareChrisWelshMBE(GSF),TravisBrooks-Garrett&CarolineZalai(APSAsecretariat/administration),PaulBlake(APSAChairman),DominicDillon(CargillAustralia),MichaelLamperd(BegaCheese/TaturaMilkIndustries),EimearMcDonough(NamoiCotton/AustralianCottonShippersAssociation)andPaulZalai(FTA).

• 8 May 2018 – GSF and VIP - Lord Mayor Welcome Function

• 9 May 2018 – Port Tour and GSF Annual General Meeting

• 10 May 2018 – DAY 1 GSF2018 – EARLY BIRD NOW AVAILABLE

• 11 May 2018 – DAY 2 GSF 2018 – EARLY BIRD NOW AVAILABLE

• 11 May 2018 – Trade Ball

Furtherdetailsareavailableatwww.FTAAlliance.com.au/upcomingevents

MElBOuRNE CONvENTiON & EXhiBiTiON CENTRE - 8 TO 11 May 2018

GLObAL ShIPPERS FORUM - GSF2018


02 9525 9500compliantcustoms.com.au

It’s ok. We understand the challenges you face with the ever-changing customs landscape. This is why over 100 Australian freight forwarders choose to outsource this important process to a team of dedicated professionals that ease the burden and leave you to do what you do well.

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We know it’s not your favourite job, but it’s always been ours!

Contact us today and leave your customs clearance to us.

CUSTOMS CLEARANCE GETTING YOU DOWN?


AustralianbusinessesareenjoyingfasterandstreamlinedtradesincetheimplementationoftheAustralianTrustedTrader(ATT)programme.ATTisavoluntarytradefacilitationinitiativeopentoallAustralianbusinessesactiveintheinternationalsupplychainandaimstoenhancetradebyimprovingtheinternationalcompetitivenessforAustralianbusinesses.Todate,26businessesarefullyaccreditedtrustedtraderswithover90businessescurrentlyundergoingtheaccreditationprocess.

ATTestablishestwoflowsoftrade:onethattheAustralianBorderForce(ABF)validatesthroughanaccreditationprocess,andonewherebusinessesareunknownorhighrisk.

ATTisrecognisedasaglobalbenchmarkforanAuthorisedEconomicOperator(AEO)programme.ItiscurrentlytheonlyAEOprogrammethatincludesallbusinessesinvolvedininternationaltrade—import,exportandservices—thatsecuretheirsupplychain,whilealsoprovidingtradefacilitationbenefitsfordemonstratingcomplianttradepractices.

ATTisfreetojoinandopentoallfinanciallysolventbusinesseswithanAustralianBusinessNumberandtwoyearsoftradinghistoryinallsectorsofAustralia’sinternationaltradecommunity.Thisincludesbigandsmallbusinessesfromsectorssuchasimporters,exportersandserviceprovidersincludingcustomsbrokers,freightforwardersandports.

BecomingaTrustedTradercangivebusinessesaccesstoworldclassbenefitsincluding:

• adedicatedABFAccountManager

• alightertouchattheborder

• priorityservicewhenrequestingadviceorreviewontariff,originandvaluationofcertaingoods

• reducedexaminationsbyoverseascustomsagencies(whereAustralia

hassignedaMutualRecognitionArrangement).

TrustedTraderswillreceivefastertreatmentatexportmarketsthroughMutualRecognitionArrangements(MRAs)withourkeytradingpartners.

Morebenefitsareinthepipelineovercomingmonths,includingdeferralofdutypaymentsonimportedgoodsforasetperiodaswellasstreamlinedreportingarrangementstocutthe

australian Trusted Trader Programme

By DEPaRTMENT OF iMMigRaTiON aND BORDER PROTECTiON

PacificBrandshelpedtoshapeATTaspartoftheirinvolvementinthepilotprogramme.TheywerealsoamongstthefirstAustralianbusinessestobecomeaccredited.TheyjoinasmallcommunityofAustralianbusinessesmeetingthehighestofstandardsinsupplychainsecurity.MrTyroneTapusoaistheHeadoflogisticsatPacificBrandsandrecognisesthe“TrustedTraderprogrammeasanopportunitytoenhanceourstrategicobjectiveofbuildinganefficientandfastglobalsupplychain”.“Bylookingatspeed,andreductionoflead-timeoftheproductscomingintoAustralia,itwasanaturalprogressionforustomovefromthebondedwarehousetotheTrustedTraderprogramme.”MrTapusoabelievesthemarketischangingrapidly,andthatfast-fashionisnowarealityfacedbythebusiness.“WithglobalcompetitorscomingtoAustralia,itisimportanttoprotectthebrandsthatthatweown.It’simportanthowweworkwithoursuppliers,notjustourtraditionalsuppliers,butalsoourpartnersinoursupplychain.”“BeinganAustralianTrustedTraderwillhelpPacificBrandsgrowanddevelop,andprovidesthemwithcertaintyandsuretyindeliveryofgoodsacrossborders.NowwehaveanopportunitytoworkcloselywiththeAustralianBorderForcetofindopportunitiesonhowtheycansupportus,aswetakeBondstotheworld.”

bORDER REFORMS


administrativeburdeninvolvedinimportingandexportinggoods.

Asatrustedtrader,youwillbeabletoworkinpartnershipwiththeABFtoco-designandtestnewtradefacilitationinitiativestobenefitindustry.

TherearefivekeystepstobecomingaTrustedTrader:

1. Submitanexpressionofinterest (EOI).

2. Completetheself-assessment questionnaire(SAQ).

3. Undergoaphysicalsitevalidation.

4. SignanAustralianTrustedTrader agreement.

5. OngoingpartnershipwiththeABF.

CompletingtheEOIrequiresyour

businesstoansweraseriesofquestionstodeterminewhetheryourbusinessiseligibletojoinATT.Ittakesabout15minutestocomplete.

Theself-assessmentquestionnaireestablishesdetailedinformationaboutyourbusiness,operations,tradecomplianceandinternationalsupplychainsecuritymeasures.Thisisusedtoassessifyourbusinessmeetstheprogrammerequirements.

Anon-sitevalidationwillbeconductedbytheABFcontactofficertoverifytheinformationprovidedintheself-assessmentquestionnaire.Thissitevisitenablesustoseeyourbusiness’tradecomplianceandsupplychainsecuritymeasuresinpractice,andwillprovideuswithanopportunitytoidentifyanyresidualrisks.

TheDepartmentofImmigrationand

BorderProtectionisalsocurrentlyexploringarangeofnewtradefacilitationbenefits,includingenhancedcross-agencycollaborationwithotherborderagencies,labourmobilityandtradeinservices,andsecuretradelanes.

Co-designwithindustryhasbeenacornerstoneoftheATTprogrammefromitsinception.BeingaTrustedTradermeansyouhavetheopportunitytoworkwithustotestnewbenefitsandinfluencethedevelopmentoffuturebenefitsanddesign.TheAustralianGovernmentisprogressingreformstofosterlegitimatetradeandprovideAustralianbusinesseswithaseamlessborderexperience.

Formoreinformationortostarttheapplicationprocess,visitwww.border.gov.au/trustedtrader.

Interested in trade facilitation benefits for your business? Become an Australian Trusted Trader and secure the benefits to help you trade more quickly and effectively.

Australian Trusted Trader is an Australian Government trade facilitation programme, which offers world-class benefits to members, including:

• a dedicated Australian Border Force Account Manager

• a lighter touch at the border

• prioritised service when requesting advice or review on tariff, origin and valuation of certain goods

• reduced examinations by overseas customs agencies (where Australia has signed a Mutual Recognition Arrangement).

Apply now or find out more at www.border.gov.au/trustedtrader


ThepassageofTreasury Laws Amendment(GST Low Value Goods) Bill 2017throughtheFederalParliamenthasrecentlygeneratedalotofinterestinthefreightandinternationaltradecommunity.Thebill,expectedtoreceiveroyalassentinthecomingdays,willseetheamendmentoftheGSTlawsuchthatfrom1July2018lowvalueimportswillgenerallybesubjecttoGSTunderavendorcollectionmodel.

However,withaProductivityCommissionInquiryduetoreporton31October2017,thereisstillsomeuncertaintyaroundtheexactformofthevendorcollectionmodel.Asthefreightandinternationaltradecommunitypreparesforcompliancebythe1July2018,itisimportanttorememberthattheexistinglawalreadycontainsitsowncomplexitieswhichneedtobeunderstood.

ThepurposeofthisnoteistooutlinethekeyconceptswhichaffecttheGSTtreatmentofimportationsandtodrawthereader’sattentiontosomeproceduralissueswhichneedtobeattendedtoinordertopreventGSTshortfallsandunnecessaryGSTleakage.Theseconceptsareparticularlyrelevantwhereanon-residententityismakingsuppliesintotheindirecttaxzone.

Taxable importations – general principles

EntitiesareliabletoGSTontheirtaxableimportations.Anentitymakesataxableimportation,if:

• goodsareimported;and

• theentityentersthegoodsforhomeconsumption.

However,animportationisnotataxableimportationifitwouldhavebeenasupplythatwasGST-freeorinputtaxedhaditbeenasupply.Animportationisalsonotataxableimportationifitiscoveredbycertainspecifiedprovisions

oftheCustoms Tariff Act 1995.InthisnotewewillassumethatthesupplyofthegoodswouldnotbeGST-freeorinputtaxedandthattheywouldnotbecoveredbytherelevantprovisionsoftheCustomsTariffAct1995.

ForthepurposesofDivision13oftheGSTAct,theCommissionerofTaxation(‘Commissioner’)considersthatgoodsareimportedwheretheyarebroughttotheindirecttaxzonewiththeintentionofbeingunloadedintheindirecttaxzone.Goodspassingthroughtheindirecttaxzoneintransittoanothercountryarenotimported.

Astotherequirementforentryforhomeconsumption,theCommissionerconsidersthatgoodsareenteredforhomeconsumptionbythelodgementofanimportdeclaration.Incontrast,iftheimportedgoodsareenteredforwarehousingunderawarehousedeclaration,therehasbeennoentryforhomeconsumptionandtherefore,notaxableimportation.

ItistheentitythatentersthegoodsforhomeconsumptionwhichmakesthetaxableimportationandisliabletoGST.TheCommissionerwillusuallyconsiderthattheentityidentifiedasthe‘owner’ontheimportdeclarationismakingthetaxableimportationinitsownright.Thereforewhereanon-residententitysupplyingintotheindirecttaxzonecontractsonDDPincoterms,itwillverylikelybemakingthetaxableimportation.Underotherincoterms,itwillbethe

gST ON ThE iMPORTaTiON OF gOODS

By CROWE hORWaTh (auST) PTy lTD

TAX COMPLIANCE

With a Productivity Commission Inquiry

due to report on 31 October 2017, there is still some

uncertainty around the exact form of the

vendor collection model


consigneethatcompletestheimportdeclarationandmakesthetaxableimportation.

Consistentwiththepolicyintentionoftaxingprivatedomesticconsumption,registrationforGSTisnotapre-requisiteforbeingliabletoGSTonimportations.Itisalsonotnecessarythattheentitywhichenteredthegoodsforhomeconsumptionisthesameentitythatimportedthegoods,onlythatthegoodswere,infact,imported.

Agency relationships

Iftheentityidentifiedasthe‘owner’isinfactactingasanagent,thenunderthegenerallaw,theactofanagentistheactoftheprincipal.TheeffectofthiswouldbethattheprincipalistheentitythatmakesthetaxableimportationandisliabletoGST.However,partiestoagencyrelationshipsareexpectedtobeabletoproduceevidenceoftheagencyrelationship.Awrittenagreementwillordinarilysuffice.Iftheagencyrelationshipcannotbedemonstrated,

theentityidentifiedasthe‘owner’willbeconsideredtobemakingthetaxableimportationinitsownrightandthereforebeliabletoGST.

Resident agents acting for non-resident principals

Division57oftheANew Tax System (Goods and Services Tax) Act 1999introducesanotableexceptiontothegenerallawofagency.Underthisprovision,whereanon-residentprincipalmakesataxableimportationthrougharesidentagent,itistheresidentagentthatisliabletotheGSTonthetaxableimportation.Theresidentagent,forthepurposesofDivision57,maybeacustomsbrokerifthebrokerisappointedtoenterthegoodsas‘owner’ontheimportdeclaration.Thisprovisionwouldnotapplytoabrokerifthebrokerisnotidentifiedasthe‘owner’ontheimportdeclaration.

Creditable importations

Anentityisentitledtoinputtaxcredits

onitscreditableimportations.UnderDivision15oftheGSTAct,anentitymakesacreditableimportationif:

• itimportsgoodssolelyorpartyforacreditablepurpose;and

• theimportationisataxableimportation;and

• itisregisteredorrequiredtoberegisteredforGST.

Whiletheidentityoftheentitywhichmadetheimportationwasnotrelevanttothequestionofwhethertherewasataxableimportation,itisvitaltothequestionofwhichentity,ifany,isentitledtoaninputtaxcredit.

Inaddition,totherequirementthatgoodsbeimported,Division15oftheGSTActalsorequiresthattheentityseekingtorecovertheinputtaxcredit,itselfmakestheimportation.Apartfrombringingthegoods,orcausingthemtobebroughtintotheindirecttaxzone,forthepurposesofDivision15,the

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Commissionerrequiresthattheentitydoessoforitsownpurposes,suchasforuseinitsbusiness,resaleorretention.Theusebyanentityofgoods:

• inamannerconsistentwiththeirdesignornature;

• forthepurposeforwhichtheyareintendedtobeused;or

• forthepurposeforwhichtheyarecapableofbeingused

isconsideredbytheCommissionertobeanapplicationbythatentityofthegoodsforitsownpurposes.

However,itispossibleformorethanoneentityinatransactiontocausegoodstobebroughtintotheindirecttaxzonefortheirownpurposes.Forexampleasupplierofamachinemaycauseittobebroughttotheindirecttaxzoneforthepurposeofsellingittotherecipient,whiletherecipientmayalsocauseittobebroughttotheindirecttaxzoneforthepurposesofoperatingthemachineinitsbusiness.

ForthepurposesofDivision15oftheGSTAct,theCommissionerconsidersthatmerelylandingthegoodsintheindirecttaxzoneforanentity’sownpurposesisnotsufficienttoamounttoanimportation.InordertohaveimportedthegoodsforthepurposesofDivision15oftheGSTAct,theentitymustalsocompletethecustomsformalities.Generallyspeaking,theentityidentifiedastheownerontheimportdeclarationistakentohavecompletedthecustomsformalities.Whereanagentcompletesthecustomsformalitiesonbehalfofitsprincipal,theprincipalisstilltheimporterofthegoods.However,asmentionedabove,documentaryevidenceneedstoberetainedasevidenceoftheagencyrelationship.

BecauseoftheparticularrequirementsinDivision15oftheGSTAct,itisimportanttoensure,whenstructuringatransaction,thattheentitythatcausesthegoodstobebroughttotheindirecttaxzoneforitsownpurposesalsomakesthetaxableimportationbycompletingtheimportdeclaration.Ifthis,oranyoftheotherrequirementsarenot

fulfilled,thennoentitywillbeentitledtoaninputtaxcredit,notwithstandingthatGSTmayhavebeenpaidontheimportation.

Theriskofthishappeningisillustratedbythefollowingexamples.

• Whereanon-residentconsignorcontractstosupplyintotheindirecttaxzoneonDDPincoterms,itmaycompletetheimportdeclaration,thusplacingitselfinthepositionoftheimporterforGSTpurposes.However,non-residententitiesareoftennotregisteredforAustralianGST.WithoutaGSTregistration,itwouldnotbepossibleforaninputtaxcredittoberecoveredunlessthenon-residentconsignorhadmadethecreditableimportationthrougharesidentagent,inwhichcasetheresidentagentwouldbothpaytheGSTandrecovertheinputtaxcredit.

• Ifatransportationbusinessmakestheimportdeclaration,itwillhavemadethetaxableimportationandbecomeliabletotheGSTonimportation.However,becauseitwould

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notbeimportingthegoodsforitsownpurposes,itwillnothaveimportedthegoodsforthepurposesforDivision15.Unlessthetransportationbusinesscandemonstratethatitisactingastheagentfortheimportingentity,neitherwillbeentitledtoaninputtaxcredit.

Theaboveexampleshavehighlightedthepotentialforlossofinputtaxcreditsontheactualimportation.However,itisalsoimportantfornon-residentimporterstolookbeyondtheprocessofimportingthegoods.Ifthenon-residentissupplyingintotheindirecttaxzoneonDDPincoterms,thenthesupplyofthegoodsisconnectedwiththeindirecttaxzonebecauseittakesplacewithintheindirecttaxzoneafterthegoodshaveclearedcustoms.Therefore,notonlyisGSTpayableontheimportationofthegoods,thesupplierhasafurtherGSTliabilityuponsupplyingthegoodswithintheindirecttaxzone.InordertocomplywithitsGSTobligations,thenon-residentsupplierwouldneedtoregisterforandremitGST,unlessithasmadethesupplythrougharesidentagent.

Conclusion

InordertocomplywiththeGSTlawandtopreventlossofinputtaxcredits,thoseinvolvedwiththeimportationofgoodsneedtobeawareofthespecificrequirementsundertheGSTActandtheexpectationsoftheCommissionerwithrespecttodocumentaryevidence.Inparticular:

• Partiesinvolvedintheimportationmustbecarefultoensurethatwhicheverpartyisidentifiedastheownerontheimportdeclarationisthepartythatisimportingthegoodsfortheirownpurposes.

• PartiestoagencyarrangementsshoulddocumentthearrangementinwritingtoensurethatthecorrectentityisheldresponsibleforanyGSTliability.

• Non-residentsuppliersmustlookbeyondtheimportationofthegoodsandconsiderwhethertherelevantsupplyisconnectedwiththeindirecttaxzoneandsubjecttoGST.

References:

• ANewTaxSystem(GoodsandServicesTax)Act1999.

• GoodsandServicesTaxRuling2003/15.

Theinformationprovidedinthisarticleisofageneralnatureonlyanddoesnottakeintoaccountyourobjectives,financialsituationorneeds.Youshouldconsiderwhethertheinformationissuitableforyouandyourpersonalcircumstances.

CroweHorwath(Aust)PtyLtdABN84006466351isownedbyFindexGroupLtd.

CroweHorwath(Aust)PtyLtdisamemberofCroweHorwathInternational,aSwissverein.EachmemberfirmofCroweHorwathisaseparateandindependentlegalentity.CroweHorwath(Aust)PtyLtdanditsaffiliatesarenotresponsibleorliableforanyactsoromissionsofCroweHorwathoranyothermemberofCroweHorwathandspecificallydisclaimanyandallresponsibilityorliabilityforactsoromissionsofCroweHorwathoranyotherCroweHorwathmember


Followingsignificantpressurefromonlineretailers,marketplacesandlogisticsprovidersinresponsetotheTreasuryLawsAmendment(GSTLowValueGoods)Bill2017,on9May2017aSenateEconomicsLegislationCommitteeannouncedaproposed12-monthdelaytotheBill.ThisBillwasdesignedtoimplementachangestartingon1July2017wherebyoff-shoreretailerswouldberesponsibleforcollecting10%GSTonallpurchasesmadefromAustraliaandthenremittingthosemoniesbacktotheAustralianGovernmentonaquarterlybasis.

Inthereport,committeechairSenatorJaneHume(VIC,LP),providedasingularrecommendation,writing:

“The committee recommends that the bill be passed, but that the implementation date be delayed to 1 July 2018. The committee urges the government to note the concerns raised in paragraph 2.78.2.78 While alternative models have been suggested, the committee does not have sufficient information before it to form the view that any of these models is preferable to the one envisaged in the bill. It also notes the OECD’s work in the area and that the OECD analysis, while not arriving at a specific recommendation, is consistent with the proposed model. The committee suggests that Treasury better articulate the rationale for its chosen model.”

ThedelayproposedwassupportedbySenatorNickXenophon(SA,IND),thoughhereiteratedtheimportanceofgettingthedetailsrightinordertosupportthegoodintentionsofthebill.

DeputyChairofthecommittee,LaborSenatorChrisKetter,togetherwithSenatorJennyMcAllister(NSW,ALP)

providedadissentingreportinwhichtheyprovidedfivekeypoints:

• TheGovernmentnotethein-principlesupportofLaborSenatorsforthecollectionofGSTonlowvalueimports.

• ThattheSenateshouldnotpasstheTreasuryLawsAmendment(GSTLowValueGoods)Bill2017.

• TheGovernmentcompleteafullreviewwithinoneyear,withengagementfromallstakeholders.Thereviewshouldincludeananalysisandcomparisonofalternativeimplementationmodels.

• TheGovernmentdeliveraRegulationImpactStatementwithanyrevisedlegislationtoassuresmallbusinessesandconsumersthatmeasureswilloperateasintended.

• Anyrevisedlegislationistohaveastartdateof1July2018

So,wherehavewebeen,wherearewegoingandwhatdoesthismeanspecificallyforfreightproviders?Let’sstartwithaquickhistorylessontoset-the-sceneforthisinitiativemovingforward.

InlinewiththeimportsphaseoftheIntegratedCargoSystem(ICS)implementationon12October2005,alowvaluethresholdforofAUD1,000wasintroduced.Governmentclearlydidnotenvisagethattheywouldbenowdealingwithramificationsofhavingtoaddresstheimplicationsofmissedrevenueduetooneofthehighestlow-valueimportthresholdsintheworld.

In2011,asonlineretailcontinuedtosurgeandtraditionalbrick-and-mortarretailerspubliclyvoicedtheirconcernaroundthelackofparitybetweenthemselvesandoff-shoreretailers,theGovernmentlaunchedaproductivity

commissiontoinvestigatetheissue.Thereportconcludedthatthecostforimplementingandpolicingcollectionswouldfaroutweightherevenuecollectedthroughtheprogram.Theydidrecommend,however,thatfurtherinvestigationswererequiredtotacklethisissueandtheLowValueParcelProcessingTaskforce(LVPPT)wascreated.

TheLVPPTprovidedtheirfinalreporttotheSenateinmid-2012,whichadvocatedforamulti-phasedapproachfordealingwiththeissueofthelowvaluethreshold.ThefirstrecommendationwastoseparatedutyandGST,dealingwitheachindependently.Duetothesimplicityofitsstructure,GSTwastobetheprimaryareaofinitialfocus.Thenextrecommendedphasesincludedcommunityconsultations,legislativeactions,severalyearsofinfrastructureandsystemchangesandagradualimplementationofthefinalmeasures.Theindicativetimeframesproposedextendedinto2016.

Therethenexistsaperiodofapparentinactivity,possiblyduetothe2013electionandchangeofgovernmentfromtheALPtotheLiberalParty.On12May2015,itwasannouncedinthe2015-2016FederalBudgetthatGSTwouldbeimposedondigitaloff-shorepurchasesbeginningon1July2017.AtaCommonwealth-StateLeadersRetreatinJuly2015itwasagreedinprincipalthatthecollectionofGSTviaavendorcollectionmodelwouldbeextendedtophysicalcross-bordersalesaswell.

ThenextformalresponsefromtheAustralianGovernmentwasinlateNovember2016whenthefirstdraftoftheTreasuryLawsAmendment(GSTLowValueGoods)Bill2017wasreleasedtothepublicforreviewandresponse.

The Good, Bad and Ugly of the delay to the gST low value goods Bill

By kai liNCOlN*

TAX REFORMS


TherewerenumerousquestionsandissuesraisedaroundthedetailscontainedwithintheBilland,aswaslaterrevealedduringtheSenateEnquiry,consultationandfeedbackwithcommunityandindustrywaslimited,ifpresentatall.TheBillwasreadintoParliamentinFebruary2017whileindustrysubmissionsremainedlargelyunanswered.

FollowingsignificantpressurefromFreight&TradeAllianceandvariousindustrysegments,includingonlineretailers,marketplaces,consumeradvocacygroupsandfreightproviders,theSenatereferredtheprovisionsoftheBilltotheEconomicsLegislationCommitteeforinquiryandreporting,dueby9May2017.

Andthat’showwegothere…Butwhereishere?

TheBilliscurrentlybeforetheHouseofRepresenatives.Atsomestageinthefollowingweeksitwilleitherbepassedwithoutchange,passedwithchangesaspertherecommendationsofthereportornot-passedandputbacktoacommitteeforanothergo-around.It’shardtoimagineitgoingthroughinitscurrentform,withLabor,LiberalsandIndependentsalikeagreeingthatadelayistheminimumapproachtoensuringasuccessfulimplementationofthelegislation.

Atthisjuncture,withoutanyfurtherfactstoshare,allthatcanbewrittenislargelybasedonopinionandpredictions,soanyonefearfuloffake-newsmaywanttostopreading…

FollowingthepathofClintEastwood,weshouldfirstlookatThe Goodthatcomesfromthedelayofthislegislation.

Timeandconsiderationmustbeinthetop-leftofanySWOT,astheSenateEnquiryhighlightednumerousflawswithboththeproposedlegislationandtheprocessundertakentohastilyput-togethertheBill.Infact,intheSenateEnquiryreportitstatesthatanofficialoftheDepartmentoftheTreasuryconcededthatithadbeenfoundtobeabreachoftheOfficeofBestPracticeRegulation’sguidelinesinpresentingthelegislationbyfailingtoprovideaRegulationImpactStatement.ThoughIshuddertothinkaboutthetax-dollarsalreadyspentontryingtoaddressthisissue,thelong-termbenefitoftakingamoreconsultativeapproachtosuchanimportantissuecannotbeunderstated.ItismyhopethattheGovernmentutilisesthewillingindustryexpertsattheirdisposaltocomeupwithawell-consideredandcommercialresponsetothisissue.The Badremainstheuncertaintyofwhatmayhappenandwhenitmayhappen.Withoutoverstatingtheobvious,thisisveryimportantlegislation.BesidesthefactthattherevenuecollectedthroughtheBillwillbenefitallAustralians,itmustberememberedthatthewholeworldiswatching.NocountryhasfoundtheperfectsolutionyetandAustralia’svendor-collectionmodelwouldbethefirstofitskind.RepresentingFreight&TradeAllianceduringtheSenateEnquiryinApril,whenaskedbySenatorKetterwhatthedangerwaswithrushingtheimplementationofthebill,Ireplied,

“As has been highlighted several times with this legislation, it is ground breaking. It is a world first. It would not be a great thing if Australia tried to roll it out in a hasty manner and failed. Then the rest of the world could basically discredit it, which might be a bad thing because it could be a good model if it is done properly.”

Therealityis,thereareonlyahandfulofcollectionpointsavailable–atthepointofsalefromthevendor,atthepointofsalefromtheconsumer,attheborderbythefreightprovider,atthedoorbythedeliverycompany.Therearestrengthsandweaknessesinallofthem,howeverweneedtofindtheonethatmakesthemostsenseandthenstructurearobustprocessaroundittoensureasuccessfulimplementation.The Uglyformeisbothverysubjectiveandself-servingforthefreightindustry.Thepropositionofabordercollectionmodel,asindicatedinthe

2012Taskforcereport,wouldrequiresignificantinvestmentininfrastructurewithinthepostalsystemand,asKimGarner,ChairmanofCAPECandManagingDirectorofFedExExpress,AustralasiastatedduringtheSenateEnquiry,

“If we use an example of collection at the border, in 2014-15 the CAPEC members, the four companies, brought 8.8 million low-value shipments into the country. That is 34,000 per day. If we have to collect that at the border, we have to make contact with 34,000 consignees. So it is a phone call; it is trying to find out what their numbers are. You call them and then you have to go through process: ‘Are you reregistered for GST or are you not? Is this exempt or is it not? Are you are resident or are you not? Is this related to carrying on an Australian enterprise?’ We would have to go through that 34,000 times a day with someone to work out whether GST is collectable or not. Then if it is, you have to make arrangements with them to actually collect it. Just using simple maths of 12 minutes per contact to do that, it would take 900 people on phones amongst the four CAPEC members to actually do that—keeping in mind that while we are doing that 34,000, the next 34,000 packages have arrived as well. So the border becomes clogged very quickly.”

Implementingabordercollectionmodelwouldbeuglyforanycompanywhocurrentlyworksorisconsideringenteringtheworldoflow-valuecross-borderimportation.ThoughitmaybethebestmodelforminimisingGSTrevenueleakage,itwillalsobethemostexpensivetoroll-outandundoubtedlytheworstoptionfortheefficientmovementoffreight.

Onlineretailisheretostayandconsumersarebuyingfromoverseasforreasonsthatfar-outweigha10%savingsinGST.Range,convenienceandpriceareallfactorsthataredrivingthisnewwaveofcommerceandeveryeffortmustbemadetogetthelegislationrightinthefirstinstancetoensuresuccess.

* Kai Lincoln is an advisor to Freight & Trade Alliance and Managing Director of Seko Omni-Channel Logistics, a specialist cross-border logistics and freight provider based in Sydney

Paul Zalai (FTA) & Kai Lincoln (Seko Onmi-Channel Logistics)


AMSA recently released the 2016 Port State Control Report, which shows the statistics on inspections of visiting ships last year. The results are encouraging. Deficiencies remain at historic lows as does the average age of ships visiting Australian ports.

Our statistics also show positive trends in compliance with the Maritime Labour Convention (MLC). As you can see from the figures opposite, MLC related deficiencies have been falling in recent years. I’m particularly pleased to see the MLC maturing as an industry standard and improving working conditions for seafarers.

We have sought to improve port State control with a focus on identifying and targeting high-risk ships. This has resulted in greater efficiencies for AMSA and less regulatory burden on those businesses operating safely. The best reward for maintaining high standards is that good operators will see AMSA inspectors less often.

The risk-based approach has driven a heightened industry awareness of Safety Management Systems or ‘whole of ship safety’. We want ship operators to take responsibility for on board safety and take pride in operating to the highest standards. For many, an AMSA inspection with zero deficiencies is a badge of honour.

I encourage you to read the full 2016 Port State Control Report on our website at amsa.gov.au.

2016 Port State Control Report Overview


3.4%

4.8%

Fire safety

Emergency systems

Life-saving appliances

Labour conditions

Pollution prevention

Certificates and documentation

Water/weather-tightconditions

Radiocommunications

Other12.5%

12.5%

13.9%

27.8%

7.1%

7.1%5%

6%

2016Detainable

Deficiencies

International SafetyManagement Code

MLC related deficiencies

Number of MLC deficiencies issued 16 2 1 10 1

Percentage of total deficiencies 1 .1 1 .2 12

MLC deficiencies per inspection 0. 0. 0.

Number of detainable MLC deficiencies 21 26 2

Percentage of total detainable deficiencies . .

Vessels banned for repeated breaches of MLC requirements

1 1 1

2016 Port State Control We give great credit to those who are proud of achieving an AMSA inspection with zero deficiencies, which is seen as a badge of honour around the world.

Mick Kinley ie ec i e ce

li n M i i e e y i y


Wearesimplifyingoldlawtomakeiteasiertoread,understandandadminister,butmoreimportantlywearemodernisingourlegislationtoallowustomanagebiosecurityriskinmodernandflexiblewaysthatallowustokeeppacewithindustryandenvironmentalchange.

ThisworkisexcitingbecauseittouchesallAustralians.Itimpactsdirectlyonthehealthandsafetyofourpeopleandenvironment.Italsoplaysacriticalroleinsupportingoureconomybyprotectingandadvancingouragriculturalindustriesbothhereandoverseas.

Thisfinancialyear,amendinglegislation

wasintroducedtotheCommonwealthParliamenttoenableavarietyofimprovementstostrengthenAustralia’simportedfoodsafetymanagementsystem.TheseimprovementswillbedeliveredthroughtheImportedFoodInspectionSchemeandareintendedtobetterprotectthehealthofdomesticconsumers.TheimprovementswillalsoreducetheregulatoryburdenforcompliantfoodimporterswhileupholdingAustralia’sinternationalobligations.

Keyhighlightsforimportersincludeanewrequirementtoprovidesupplychainassuranceforcertaintypesoffoodswherebordertestingaloneisinsufficient

Biosecurity reforms respond to changing global trade environment

in 2017-18, the Department of agriculture and Water Resources has a number of legislative reform and improvement projects underway to support australia’s agriculture, food and fibre industries to grow and remain internationally competitive.

By lyN O’CONNEll, Deputy Secretary, Department of agriculture and Water Resources

bIOSECURITy REFORMS

Australia’s emergency powers

will also be broadened to allow

food to be held at the border where there is uncertainty about the safety of a particular

food.


toensurefoodsafety.Theywillneedtoprovideaninternationallyrecognisedfoodsafetymanagementcertificatewhenimportingthesefoods,demonstratingfoodsafetycontrolsareinplacethroughouttheirsupplychain.Therewillalsobearequirementtokeeprecordstoensurefoodistraceableonestepbackwardtothesupplier,andonestepforwardtothecustomer.

Australia’semergencypowerswillalsobebroadenedtoallowfoodtobeheldattheborderwherethereisuncertaintyaboutthesafetyofaparticularfood.Thiswillimprovemonitoringandmanagementofnewandemergingrisks,andallowustobettertargetpotentialareasofnon-compliance.

Implementationtimingwillvarywithlegislativereformsexpectedtobecomeeffectivein2018.Nonlegislativechangeswillbeimplementedsoonerbythedepartmentovertheremainderof2017.Inallcases,wewillbeintouchthroughdepartmentalchannels,industryassociations,andpublicationssuchasthisone,toletimpactedstakeholdersknowhowtomeetnewandupdatedobligations.Wearealsosensitivetothetimeitcantaketoupdatebusinesspractices,soa12monthtransitionalperiodwillapplytosupporttheimplementationofthesupplychainassuranceandtraceabilityimprovements.

Withmuchofourexportregulationframeworkduetoexpireon1April2020,workisfullsteamaheadonmodernisingandconsolidatingthe17Actsand40otherlawsthatcompriseourcurrentsystem.Draftlegislationbasedonconsultationwiththecommunityandindustrywillbereleasedforcommentlaterintheyear.Wewillcontinuetoengagewithinternationaltradingpartners,andwillconnectwithindustryandgovernmentforfeedbackthroughavarietyofforumsin2017.

ImplementationoftheBiosecurityAct2015(theAct),whichreplacedtheQuarantineAct1908inJune2016,alsocontinuesthisyear.Similarlytotheexportregulation

changes,thisworksimplifieslegislationthatwasdifficulttounderstandandworkwith,asithadbeenamendedover50timesinits108yearlifetime.Thenewlegislationallowsustomanagebiosecurityriskinamoremodernandflexibleway,inresponsetooureverchangingglobaltradingenvironment.

Somepartsofthelegislationhavetransitionalarrangementsanddelayedcommencementdates,suchastheBallastWaterprovisionswhichwerepassedbyparliamenton9May2017.Wewillbeintouchwithimpactedstakeholdersastransitionalarrangementsendandnewlegislationcomesintoeffect,toensureeveryoneisawareoftheirnewobligationsundertheAct.

InregardtotheBallastWaterprovision,thenextmilestonewillberatificationoftheInternationalConventionfortheControlandManagementofShips’BallastWaterandSedimentwhichislikelytooccurinearlySeptember2017.

ThefinalgroupofactivitiesforyoutobeawareoffallundertheAgriculturalCompetitivenessWhitePaper.TheGovernmenthascommitted$200milliontoimprovebiosecuritysurveillanceandanalysistobettertargetcriticalbiosecurityrisks.ThisinvestmenthelpsAustralia

maintainitsreputationforclean,pestanddisease-freeproduce.ItdirectlybenefitsAustralianprimaryproducers,andsupportsthefreightandtradeindustriestomaintainandgrowmarketaccessbothdomesticallyandinternationally.

Iencourageyoutovisitourwebsiteformoreinformationonthesereformsandotherworkbeingdeliveredbythedepartment.Informationabouthowtosubscribetoupdatesonthetopicsmentionedinthisarticleisavailablebelow.

More informationImportedfoodsafetyVisitagriculture.gov.au/[email protected].

ExportregulationreviewVisitagriculture.gov.au/export-regulation-reviewandsubscribetoupdatesonthistopicatthebottomofthepage.

BiosecuritylegislationVisitagriculture.gov.au/biosecurity/Australia/biosecurity-reform

Subscribetoupdatesonthistopicathttps://agriculture.custhelp.comthroughtheBiosecurityLegislationlist.

AgricultureCompetitivenessWhitePaper

Visitagwhitepaper.agriculture.gov.au


Australia’scommitmenttoopentradeandinvestmenthashelpeddeliveraquarterofacenturyofeconomicgrowth.TobuildonthistheAustralianGovernmentmustcontinuetoreduceredtapefortraders.TheWTOTradeFacilitationAgreement(TFA)enteredintoforceinFebruarythisyearandwilldoexactlythat.ItisthefirstnewagreementinvolvingallmembersoftheWTOsinceitbeganin1995.

TheAustralianGovernmenthasbeenastrongsupporterofconcludingtheTFA,whichsimplifies,modernisesandharmonisesexportandimportprocesses.TheTFAmakesthemovement,releaseandclearanceofgoodsquicker,easierandcheaper.

OneofthewaystheTFAdoesthisisthroughtheprioritisationofcustomsclearanceofperishablegoods.Thisisawinforregionalexporters,asitmeanstheirgoodswillspendlesstimewaitingforclearanceatportsoverseas.Thisreducesoperatingcostsforexportersandmakestheirgoodsamoreaffordableandattractiveoptionforinternationalcustomers.

UndertheTFA,exporterscansubmitimportdocumentationforprocessingbeforetheirgoodsevenarriveinport.Theycanalsohavetheirgoodsclearedpriortothefinaldeterminationofdutiesandcharges.Australianbusinesseswillbeabletoobtainspecific,bindinginformationonthetariffclassificationfortheirgoodsbeforearrivalatforeigndestinations.BenefitswillalsoflowfromnewrequirementsthatWTOmemberspublishrelevantproceduresandformsonlineforimportinggoods.

Thesechangeswillmakeiteasierforbusinessestonavigateoverseas

customsprocedures,makeiteasierforAustralianexporterstomoveintonewmarkets,andhelpAustralianimporterswhoseoverseascounterpartshavetonavigatethesemarketconditionsaswell.Ultimately,thesechangeswillreducetheamountoftimeittakesforgoodstoreachtheirfinaldestination.

WhileAustraliaisaleaderintradefacilitationbestpractice,westandto

benefitfromimplementationoftheagreementbyourtradingpartners.A2015OECDstudyfoundthatAustraliastandstobenefit,intermsofbilateraltradeflowsandreducingtradecosts,throughadoptionofmeasuresincluding:informationavailability,advancerulings,feesandcharges,automationandthestreamliningofprocedures.

ThebiggestAustralianbeneficiariesarelikelytobesmalltomediumsizedenterpriseswho,unlikelargerfirms,donothavetheresourcesorlargetradevolumestopowerthroughcomplexcustomsprocedures.

TheOECDhasestimatedthatfullimplementationoftheTFAcouldreducetradecostsgloballybyupto17.5%.Inaddition,thePetersonInstitutehasestimatedthattheTFAcouldincreaseglobalGDPbyUS$1trillionperannumandcreateupto21millionjobs.

TheTFAaddstoasuiteoftradeagreementsthatwillbenefitAustralianbusinessesandthewidercommunitytobuildaprosperousfutureforusall.

The WTO Trade Facilitation agreement

By DFaT

The TFa commits WTO members to implement common sense customs reforms, which will make procedures around the international movement of goods faster, cheaper and more transparent.

TRADE REFORMS


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Members turn out in record numbers to ensure complianceFreight&TradeAlliance(FTA)hosteditsAutumnseriesofCPD&CBC–BorderandBiosecurityComplianceProgrameventsattractinglargenumbersofimporters,exportersandlicencedcustomsbrokerstolearnaboutthelateststatutoryreformsandtobeinapositiontoimplementbestpracticemeasures.OurSpring2017eventsalreadyhavesignificantregistrationswithmemberstakingadvantageoftheearlybirdratesandprogrammingtocompletetheirannualprofessionaldevelopmentrequirements.Melbourne–ParkroyalMelbourneAirport(6September2017);Sydney–NovotelBrightonLeSands(11October2017);Brisbane–NovotelBrisbaneAirport(25October2017)–referupcomingeventsatwww.FTAlliance.com.au

PROFESSIONAL DEVELOPMENT

Michael Growder (Department of Foreign Affairs and Trade –

DFAT)

L to R – Heather Holman and Norelle Thomson (Vantage Customs) & Pierrett Stewart

Dean Bell (Bell Total Logistics)

Erin Dale (Commander Customs Compliance, Border Management Group, Australian Border Force)

Stephen Skehill (Chairman – National Customs Brokers Licensing Advisory Committee – NCBLAC)


Paul Zalai - Freight & Trade Alliance (FTA)

Connie Han (Schenker Australia)

Andrew Curdie (Crowe Horwath)Lynne Grant (Hunt & Hunt Lawyers)

Sue Danks (WiseTech Global)

Peter Thorburn (Peter Thorburn & assoc) Caroline Zalai - Freight & Trade Alliance (FTA)

Christian Merrigan and Leanne Lewis (Insync Personnel) networking with

delegates

Tony Nikro (Nikro Customs & Trade Solutions/Freight & Trade Alliance – FTA)


The Trigger is PulledAt2:39PMonthe29May2017,theBritishPrimeMinisterTheresaMaypulledthetriggeronArticle50oftheLisbonTreaty,toofficiallyuntieBritainfromtheEU,theworld’slargestsinglemarket.Whatothercountryinhistoryhaswilfullyintroducedtradebarriersagainstitsbiggestclientandbiggestsupplier?Internationaltradeacademicshavecalleditmadnessandit’shardtodisagree.

Asidefromthemajortradeimplicationstherearemajorpracticalimplicationsfortheirlocaltransportandlogisticssectorthatpresentfarlargerandmoreimmediatechallenges.Theseincludeanincrediblelabourshortagewhere290,940EUworkersarecurrentlyemployedintheUKlogisticssector,with10%ofHeavyGoodsVehicledriversand

23%ofwarehouseworkersemployedunderEUworkrights.Let’sputtradetalkasideforamoment.IftheseworkerslosetheirrighttoworkintheUK,thenhowwilltheBritishkeeptheirtrademoving,withorwithouttradeagreements?

CurrentlyUKregisteredvehiclescanmovefreelybetweenEUandmemberstates.UKoperatorswithaCommunitylicensecanmovefreelyacrossborders.Imagineifthosemovementrightsweresuddenlyremoved?TheequivalentscenarioistheestablishmentofahardborderbetweenVictoriaandNewSouthWales.Moreoverwewilllikelyseetheintroductionofadministrativeformalitiesandnewregulatorybarrierstotradeforallgoodsmovements.WillweseecatastrophicbottlenecksatCalaisandothercrossings?Onlytimewilltell.Butitwillbeaninteresting,andsensitive,negotiationahead.

ThegreatBritishmantra“keepcalmandcarryon”willcomeinhandyrightaboutnowandbeinganoptimisticAustralian,I’vetakenthesamelineofthinking.Freight Transport Association of the UK- the Manifesto TheAustralianPeakShippersAssociation(APSA),thepeakbodyforAustralia’sshippers,recentlypresentedattheKeepBritainTradingconferenceinLondon,representingtheinterestsofAustralianindustry.OtherspeakersincludedtheRt.Hon.DavidJonesMP,theMinisterforStateandtheDepartmentforExitingtheEuropeanUnionandJamesHookham,theDeputyCEOoftheFreightTransportAssociation.TheFreightTransportAssociationoftheUKisleadingtheconversationwiththeBritishGovernment,producingtheFTABrexitManifestoandencouragingapositiveandconstructiveapproachtothetransition.TheirManifestopointstoalargenumberofEUprivilegesthatneedtobemaintainedinanyfutureoperatingenvironmentincludingEUCompetitionRulesinMaritimeTransport,EURailPolicyandDriver’sHoursRules.LawmakerswillbekeentomaintainsomeoftheexistingEUruleswhendraftingtheGreatRepealBill.Forreadersinterestedinmoreofthedetail,IwouldencourageyoutoreadthefullFTABrexitManifestoavailableontheFTAUKwebsiteathttp://www.fta.co.uk/export/sites/fta/_galleries/downloads/brexit/brexit-manifesto.pdfEmpire 2.0TheUKhasreachedouttotheCommonwealthcountries,includingAustralia,andwhywouldn’tthey?Withacommonlanguageandstrongculturaltiesitmakesperfectsense.Culture

Old Blighty leaves the Eu: opportunities and risks for the Transport & logistics sector

By TRaviS BROOkS-gaRRETT, Partner, Freight & Trade alliance

INTERNATIONAL

David Wells, CEO, Freight Transport Association UK; Bob Ballatyne; Travis Brooks-Garrett; Cindy Hick; Sean van Dort; Chris Welsh MBE; Alex Veitch


andlanguageareseriouslyunderratedbarrierstotradeasanyonetradingwithChinaandSouthEastAsiawilltellyou.Asidefromoursharedhistory,inpuretradeterms,theUKandAustraliahavebeenmovinginoppositedirectionssince1973andovertheyearstheCommonAgriculturalPolicy(CAP)providedamajorchallengetothatrelationship.WhiletheUKisstillAustralia’slargesttradingpartnerintheEUtheyarenotamajordestinationforAustraliangoods.Australiarepresents0.5%oftheUK’simports(36),whileAustraliaasadestinationforUKexportsrepresentsonly1.2%(20).Inpuretradeterms,weshouldn’tbeatthetopoftheirfriendslist.Buthistorycountsforsomething.

Whiletradeagreementsareattractiveandgrabheadlines,Non-TariffBarrierstoTrade(NTBs)areofmuchbiggerconcerntoAustralianexporters.Freight&TradeAlliance(FTA)andtheAustralianPeakShippersAssociation(APSA)hasthereforemadeformalrecommendationstotheAustralianGovernmentinrespecttotheopportunityofaMutualRecognitionAgreement(MRA)betweentheUKandAustraliaundertheAuthorisedEconomicOperator(AEO)programme,whichallowscertaincustomsprivilegesforaccreditedimporters,exportersandserviceproviders.WhileAustralia’sversionoftheAEOprogramme,theAustralianTrustedTrader(ATT),hasreceivedahugewaveofsupportfromindustry,theAEOprogrammeintheUKprobablyneedsaninjectionofactivitybeforethatproposalcouldbearfruit.Whileatradeagreementmaytakeyears,anMRAbetweenthetwocountriescould

potentialhappenmuchquicker.

Always Look on the Bright Side of Life OneimportanttakeawayfromtheKeepBritainTradingConferencewasthepossibilityoftheUKsecuringnewdealswiththeemergingpowersinAsia(China,India,Japan),wheretheEUhasspectacularlyfailedinsecuringFreeTradeAgreements.WhiletheEUmayhavebeentheworld’slargestsinglemarketitcouldalsobeseenasoneoftheworld’slargestbureaucracies.WhileAustraliahasforgedaheadwithtradeagreementswithChina,JapanandtheUS,theEU(andit’smembernation,Britain)hasbeennegotiatingwiththeUSunsuccessfullyfor27years(TTIP)and

withChinaforover10years.Mobilisingandharmonisingtheinterestsofthe28memberstatesoftheEUmayhavebeenamillstonearoundtheirnecks,notthegreateconomicliberatoritwassaidtobe.Tradeagreementsareashardorasdifficultasyoumakethem.MaybethiswillbetheopportunitytheUKneedstobreakfreeandcapitaliseontheAsianCenturyasAustraliahasdone.

Freight&TradeAllianceandtheAustralianPeakShippersAssociation(APSA)willbecontinuingtoworkwithDFATandourUKcounterpartsonclosertraderelationshipswiththeUK.Ifyouwouldliketoprovideinputintothosediscussions,[email protected]

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Travis Brooks-Garett, Australian Peak Shippers Associaiton; Sean Van Dort, Sri Lankan Shipers Council; Bob Ballatyne, Freight Management Association of

Canada; Teddy Soobramanien, Commonwealth Secretariat; James Hookham, Freight Transport Association UK; Chris Welsh, Secretary-General, Global Shippers

Forum; Professor Jim Rollo, UK Trade Observatory


Aftertheconscienceofthecontainertradingworldwasfocussedonaccurateweightslastyear,withtherevisiontoSOLASenteringforceon1July2016makingmandatorythesubmissionofaVerifiedGrossMass(VGM)forallpackedcontainersasapre-conditionforloadingonboardaship,thisyeartheTTClubiscallingforconcertedactiononaraftofotherissuesaffectingthesafeandsecuretransportofgoodsaroundtheworld.

TTClubbelievesthataninsistenceonaccurategrossmasswasmerelythefirststepinachievingwhatitiscalling‘CargoIntegrity’,notjustwithincontainertradesbutthroughouttheentiresupplychain.TheconceptofCargoIntegrityseekstodrawattentiontoothervitalaspects,primarilyrelatedtoensuringthatcargoisappropriatelypackedandsecuredwithinthecarryingunit,whetherafreightcontainer,aroadtrailer,railcarorother‘cargotransportunit’(CTU).Theentiretyofthepackingprocessincludesensuringthattheunitisbothsuitableandin

goodconditionfortheintendedjourney,correctlyclassifyinganddeclaringthecargothatispacked,planningappropriateloaddistributionandmakingsurethatallitemsareproperlysecuredtopreventlongitudinalortransversemovementduringtransport.

Withdangerousgoodsmakingupanestimated10%ofallcontainerisedshipmentsworldwideitisimperativethatallthestakeholdersworktogethertosafeguardpeople,cargo,assets,infrastructureandtheenvironmentfrominherentriskaschemicalsandotherhazardouscargoesmovethroughinternationalsupplychains.Properclassification,declaration,packing,securing,stowage,storageandhandlingareallcriticalconsiderations,aslaiddowninnumeroussafetylaws,recommendationsandguidancefromregulatorsandindustrybodies.

Simplecontainermaintenanceisalsoaconcern.Containeroperatorsneedtoensuretheyhaveinplaceasystem

Safety & Security: it’s all about Cargo integrityA plea by TT Club’s Peregrine Storrs-Fox for a greater degree of attention to the security of cargo loads within containers and the safety of their transportation as a whole.

TT Club believes that an insistence on accurate gross mass was merely the first

step in achieving what it is calling

‘Cargo Integrity’, not just within container

trades but throughout the entire supply

chain.

INSURANCE


1International Maritime Organization (IMO), the International Labour Organization (ILO) and the United Nations Economic Commission for Europe (UNECE)

formonitoringandmaintainingthestateofthecontainersundertheirstewardship.Whileinspectionandrepairstandardscoverthemainoperationalissuestokeepthecontainer‘fitforpurpose’andprotectthevalueoftheasset,theynecessarilydovetailwiththeContainerSafetyConvention(CSC)listofdeficienciestostructuralcomponentsofthecontainerthatwouldrenderthecontainerunsafeandnotfitfortransport.Importantly,thisCSCsafetystandardincludesinstructionstoportcontrolofficersandotherauthorisedpersonswhocanstoporrestrictthemovementofthecontainer.

However,akeystakeholderintheprocessisthepackerwhoneedstobesatisfiedthatthepresentedunitissuitableforthecargoandintendedjourney.

ThesevariedaspectsofCargoIntegrityareallimportantinnotonlysafe-guardingthecargoitselfbutalsothe

well-beingofthosehandlingthegoodsatwarehouses,duringinlandtransport,atportsandofcourseatsea.TTClubiscommittedtoreducingtheincidenceofunstableloadscausingtrafficaccidentsorinjurieswhenunpacking,andmisdeclareddangerousgoodscausingfiresbothatwarehousefacilitiesandatsea,givingrisetounacceptablerisksthroughoutthesupplychain.

IntheimmediatefutureTTClubisanxioustopromoteawarenessof,andadherencetotheCTUCode.ThisistheIMO/ILO/UNECE1CodeofPracticeforPackingofCargoTransportUnits,apublicationsponsoredbythethreerelevantUNagencies.

TheTTClubhasrepeatedlypubliciseditsfindingsthatpoorandincorrectpackingoftransportunitscontributestosome65%ofcargodamageclaims,additionallycausinginjuriesandfatalities,aswellasdamagetootherproperty.TheCTUCodeisdesignedto

addressthesefundamentalissues,within-depthguidanceandinformationforallstakeholdersinthesupplychain-fromshippers,cargopackers,forwardersandlogisticscompaniesthroughtoroad,railandseacarriers,aswellasportsandterminals.

TheCodelegitimisesthechainofresponsibilityforallstakeholders,providingacomprehensiveframeworktoensurecargocancompletetheentirejourneysafelyandsuccessfully.TTClubisurgingallthoseengagedinmovinggoodsinternationallytofollowtheCodediligently.

OverthecourseoftheyearTTClubwillbeadvisingoninitiativestoimprovesafecarriageofinternationalfreightthroughitsCargoIntegritycampaign.AnearlyexampleofthisisaneventontheCTUCodeduringtheEuropeanShippingWeek,organisedjointlywithGlobalShippersForum,ICHCA,andWorldShippingCouncil.

When you are responsible for the transit of cargo around the world, it’s at risk from a huge range of potential problems. That’s why you need transport and logistics insurance from a leading provider. TT Club is there wherever you are, and whenever you need us with trusted local experts who not only speak the language but who can cut through the complexity, and get things done. Quickly, efficiently and mindful you need to keep your business running smoothly. www.ttclub.com

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Injustoveraweek,significantchangestothescreeningofUS-boundaircargowillbeintroducedwhichwillaffectallAustralianbusinesseswhichexporttotheUSbyair.

After1July2017,allUS-boundaircargoexportswillneedtobeexaminedatpiecelevelororiginatefromaKnownConsignor.TheserequirementshavebeenimposedonairlinesbytheUSGovernment.

WhiletheAustralianGovernmenthasbeenworkingwithAustralianbusinessestohelpthemcomplywiththeseUSrequirements,it’simportanttonotethatafter1July,AustralianbusinesseswillnotbeabletoexporttotheUSbyairunlesstheycomplywithUSaircargoscreeningrequirements.

Toavoidincreasedcosts,delaysandredtape,businessesshouldunderstandthesechangesandwhattheyneedtodotocomply.

Piece-levelexaminationmeansthateachindividualbox,cartonorotheriteminashipmentisexaminedbyanX-raymachineormetaldetector,dependingonthenatureoftheitembeingexamined,beforeitisloadedontoanaircraft.

Piece-levelexaminationcanbedonebyanAustralianGovernment-approvedfreightagentwhocanexamineUS-boundaircargo(alistoftheseagentscanbefoundonthewebpagelistedattheendofthisarticle).

ThereisalsotheoptionofbeingapprovedasaKnownConsignor,whichallowsbusinessestosecureaircargothattheyoriginatetominimisepotentialdelaysandcosts.

ArangeofbusinesseshavealreadybecomeKnownConsignorsandanumberofotherbusinesseshavestartedtheprocessofbecomingaKnownConsignor

tosecuretheirUS-boundaircargobusiness.

YoucanvisitthewebpagelistedbelowtobegintheprocessofbecomingaKnownConsignor.

TheAustralianGovernmentwillcontinuetoworkwithAustralianexporterstominimiseredtapeandensurecompliance.

MoreinformationincludingresponsestoFrequentlyAskedQuestionsandalinktosubscribetoAirCargoSecurityupdatescanbefoundontheDepartment’swebsiteathttps://infrastructure.gov.au/security/air-cargo/us-bound-air-cargo-security-arrangements.aspx

Formoreinformation,contactaircargosecurity@infrastructure.gov.auorringtheOfficeofTransportSecurityGuidanceCentreon1300791581between9amand5pmonweekdays.

Changes to uS air cargo screening requirements – are you ready?

NEW SCREENING REQUIREMENTS FOR US-BOUND AIR CARGO FROM 1 JULY 2017

07 07

OPTION ONEKNOWN CONSIGNOR

Cargo TerminalOperator

Cargo TerminalOperator

Cargo screenedby RACA

07 07

RACA – regulated air cargo agentsecured cargocleared cargouncleared cargoKEY

FIND OUT MORE: https://infrastructure.gov.au/security/air-cargo/us-bound-air-cargo-security-arrangements.aspx

OPTION TWOEXPORTER

ClearedAir Cargo

ClearedAir Cargo

Enhancedexaminationat piece level

SECURITy REFORMS


A global resource providing:• Port Agency• Liner Agency• Husbandry Services• Offshore Support Services• Bunker Coordination• Ship Maintenance• Spares & Supplies• Provisions & Stores• Cash to Master• Marine Surveys• Medical Assistance• Crew Movements• Accommodation, Air Tickets

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Through our network of offices in more than 60 countries we service a diversified customer base of 2,500 clients across the oil, cruise, navy, container and dry-bulk commodity sectors.

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AustraliaInchcape Shipping Services Pty Limited,Level 10, 54 Miller Street,North Sydney, NSW 2060, AustraliaTel: +61 2 9410 8888Email: [email protected]

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Papua New GuineaInchcape Shipping ServicesLevel 5, Mogoru Moto BuildingChampion Parade, Port MoresbyTel: +675 321 2599Email: [email protected]

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known Consignor benefits from Marinova (an approved known Consignor)

InnovativeTasmanianbioactiveseaweedcompoundexporterMarinovahassigneduptotheDepartmentofInfrastructureandRegionalDevelopment’sKnownConsignorprogramtosecureitsUS-boundaircargobusiness.

TheKnownConsignorprogramenablesAustralianbusinessesexportingtotheUStosecureaircargooriginatingfromtheirbusinesstominimisepotentialdelaysandcosts.

TheprogramhasbeenestablishedbytheAustralianGovernmenttohelpAustralianbusinessesmeetmorestringentUSaircargoscreeningrequirementsimposedonairlinesbytheUSGovernment.

Marinova,basedinCambridgenearHobart,isaprogressivebiotechnologycompanyfocussedontheresearch,developmentandmanufactureofhigh-puritycertifiedorganicfucoidancompoundsextractedfromseaweed.

Thecompanywasfoundedin2003andisnowrecognisedgloballyforquality,sustainabilityandinnovation.Fucoidan-containingseaweedsareprizedfortheirdietaryandtherapeuticproperties,withtheirmedicinalpropertieswell-documentedinAsianculturesforthetreatmentofarangeofhealthconditions.

MarinovaOperationsManagerDrDamienStringerexplainedthatUSclientsconstitutedasignificantproportionofthecompany’sbusiness,withstrongsalesgrowthprojectedtocontinueinthefuture.

“Theseclientsrelyonrapid,on-timedeliverytomeetproductionscheduleswhichcanonlybeachievedusingairfreight,”DrStringersaid.

“RapidclearanceanddeliveryofMarinova’sgoodstoUSclientsiscrucialandanybarrierstoUSclientschoosingMarinovaasapreferredsuppliermustberemovedbecausetheyexpecton-timedeliverywithlittleturnaroundtimefororders.

“Inagloballycompetitivemarketplace,Marinovamustmakeeveryefforttoexpeditedeliveries.”

DrStringeralsoexplainedthatbecomingaKnownConsignorwasarelativelystraightforwardprocessbecauseMarinovaoperatesinahighly-regulatedenvironment,whichmeantthatmanyofthesystemsrequiredforbecomingaKnownConsignorwerealreadyinplace.

“ThesupportofferedbytheDepartmentduringtheapplication/consultationphasemeantthattheapplication/validationprocesswasmadeeasier.”

DrStringeraddedthatMarinovawouldrecommendbecomingaKnownConsignortootherAustralianexporterstotheUS.

By DaMiEN STRiNgER

SECURITy REFORMS

31Winter 2017 I Across Borders Iwww.vict.com.au

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Thereisaperceptionthatanimporter’spriorityistopayaslittlecustomsdutyaspossibleandthattraderswillpushtheboundariesofthelawtoachievethisoutcome.Whatwefindinpracticeisthatclientsvaluecertaintymost.Importersneedpredictability.Thisenablesthemtoaccuratelypredictthecostofimportinggoodsandmakedecisionsastosourcingandsettingprices.Whattheydonotwantisanunexpecteddutybillrelatingtogoodssold4yearsago.Oftenlegislationisimpreciseandittakesaseriesofcourtcasestoclarifyhowthatlegislationshouldbeinterpreted.Whenitcomestoincometaxthereisenoughmoneyatstaketoresultinasteadystreamofcases.Additionally,ifthereappearstobeagapinthelaw,theAustralianTaxationOfficemayelecttorunatestcase.Theworldofcustomsandtradeisdifferent.Withdutyratesgenerallynotexceeding5%,thenumberofcaseswherethedutyindisputeexceedsthecostsoflitigatingthematterarefew.Further,itiscommonpracticetolitigateintheAdministrativeAppealsTribunal(AAT).AATdecisionsdonot

carrythesamelevelofauthorityascourtdecisions.Additionally,itisnotuncommonforimporterstonotberepresentedbylawyersintheAATresultinginamismatchagainsttheGovernment’sspecialistcustomslawyersandsomeunexpectedoutcomes.

Thisdynamichascreatedasituationwherethereareanumberofareasthatarecurrentlythesubjectofgreatuncertainty,bothfortheGovernmentandthetradecommunityseekingtocomplywiththelaw.Belowwesetoutawishlistforcustomsandtradecourtcasesoverthenext12months.

What does the wording of a tariff concession order coverThereare15,000tariffconcessionorders(TCOs)usedtoavoidmillionsofdollarsofdutyeveryyear.TCOsreducedutytozeroandapplywheretheimportedgoodshavethesametariffclassificationastheTCOandtheimportsfitwithinthewordingusedintheTCO.Forexample,thereisaTCOthathasthewording“Ovens,microwave”.

SincetwoAATdecisionsin2014and2015therehasbeengreatuncertaintyastohowtointerpretthewordingof

those15,000TCOs.ThebiggestareaofuncertaintycentresaroundtowhatextentaTCOapplieswhereanimportisofanitemdescribedintheTCO,butitcomeswithadditionalitemsorfeaturesnotexpresslymentionedintheTCO.Forexample,wouldtheabovemicrowaveTCOcoveramicrowavethatcamewithamicrowavecookbookormicrowavefriendlycontainerorthemicrowavewasaconvectionmicrowave?

In2014and2015thereweretwoAATdecisionsthattookaverynarrowapproachtotheinterpretationofTCOwording.TheoutcomeofthesecasesisthatTCOwordinghasbeenverynarrowlyinterpretedbytheAustralianBorderForce(ABF)andwillrarelybetakentocoveraccessoriesthatarenotexpresslystatedintheTCOwording.ThefavouritequotefromtheABFfromthesecasesisthat“…thegoodsmustpreciselyfitthedescriptionsetoutintheTCO”.

However,thesecaseswereattheAATlevelandarenotentirelyconsistentwithpreviousFederalCourtauthority.Eventhecasesthemselveswereinconsistent.InonecaseitwassaidthatthegoodsmustfitpreciselywithintheTCOwording,buttheninthenextbreaththeTribunalMemberheldthatcertainadditionalitemsimportedwiththegoodscanbedisregardedwhenconsideringtheapplicationoftheTCO.

ItisalsothecasethatthenarrowerapproachtointerpretingTCOwordingcanmeanthattheverygoodsforwhichtheTCOwasoriginallyobtained,wouldnotnowfitwithintheTCO.ItseemsclearthatthemakersofTCOs(someofwhichareover20yearsold)didnotconsiderthattheconcessionswouldbeinterpretedsonarrowly.

The court cases we have to have

By RuSSEll WiESE and lyNNE gRaNT, hunt & hunt lawyers.

LEGAL UPDATE


CurrentlythestateofthelawhasleftimportersandcustomsbrokersguessingastowhetheraTCOapplies.WithsomanyTCOsbeingusedformanydifferentgoodsitisaninefficientsolutiontosimplysaythatcustomsbrokersshouldbeobtainingrulingswherethereisdoubt.ThelifeofboththeABFandcustomsbrokerswouldbeeasierifacasewastakentotheFederalCourtthatfullyexploredwhetheraTCOcancoveranimportwheretheprimarygooddescribedintheTCOwasimportedwithaminoradditionalitem.UntilthenwewillbearguingwiththeABFastowhetherTCOwordingimpliedlycoversthegooddescribedintheTCOplusanyothergood/part/accessorythatwouldreasonablybeexpectedtobeimportedwiththatgood.“Owner” liability for dutyThetradecommunitywassurprisedin2015whentheAATruledthattheAustralianconsigneeofgoodswasliableforunderpaiddutyincircumstanceswheretheChinesesupplierarrangedfortheimportationofthegoodsanditwasthatsupplierwhohadprovidedmisleadinginformationtotheGovernment.TheCustomsActprovidesthatthe“owner”isliableforunderpaiddutyandthedefinitionof“owner”inrespectofgoodsincludes“anyperson(otherthananofficerofCustoms)beingorholdinghimselforherselfouttobetheowner,importer,exporter,consignee,agent,orpersonpossessedof,orbeneficiallyinterestedin,orhavinganycontrolof,orpowerofdispositionoverthegoods”.Theresultofthedecisionwasthatapersonwhoatanytimefellintotheabovedefinitionof“owner”couldbesubjecttoaclaimforunderpaidduty.Toconsiderthebreadthofthis,imaginethenumberofentitiesthatareatsomestageinpossessionofgoodsthathavebeenimportedintoAustralia.TheAustralianconsigneewasnotrepresentedbyalawyerintherelevantcaseandthejudgmentrevealsaveryone-sidedviewofthecaselawontheissue.Forinstance,astatementbytheHighCourtthatabona-fidepurchaserforvalueisnotan“owner”andliableforduty,wasquicklydismissed.Theoutcomeisanunbalanceddecisionthatmakesallinthesupplychainpotentially

liableforunderpaiddutyatanytime.WhileitwillbeuncommonthattheABFwillpursueanentityotherthantheimporterofrecord,theprecedentsetbythe2015AATcaseremains.Untiltheconceptofwhoisan“owner”,andliableforduty,isfurtherexploredbyasuperiorCourt,anyentityinvolvedinthemovementorownershipofinternationallytradedgoodsispotentiallyliableforunderpaidduty.Free trade agreements – inconsistent tariff classificationThereisverylittlecaselawonthecircumstancesinwhichafreetradeagreement(FTA)willapply.However,sincethecommencementoftheChinaAustraliaFTA(ChAFTA)therehavebeenconstantquestions.DisputesovertheapplicationofChAFTAhavenotyetmadetheirwaytoCourtastheeasiestfixistoretrospectivelycuretheproblem.However,theabilitytoretrospectivelycureissuesregardingcertificatesoforiginlargelydisappears12monthsfromthetimeofexport.AmajorreoccurringissueiswhetheracertificateoforigincanbeusedwherethetariffclassificationlistedonthecertificateoforiginisdifferentfromthetariffclassificationtheAustraliancustomsbrokerwishestouse.Thisdiscrepancycanarisefromgenuinelyhelddifferingviewsastothecorrectclassificationtoadeliberatelyincorrectclassificationusedtoavoidexportrestrictions.Thereisalegitimateargumentthattherequirementthatacertificateoforigincontainatariffclassificationissatisfiednomatterwhattariffclassificationisinserted.Thereisnoexpressrequirementthatacertificateoforigincontainthecorrecttariffclassification.Thecontraryargumentisthatatariffclassificationthatisobviouslywrongmeansthatthecertificateoforigindoesnotsufficientlyrelatetotheimportedgoods.Acaseonthisissueisneedednowsothatimporterscanaddresstheissuewhilethereisstilltimetoavoidadisastrousdutyoutcome.Ifacasedoesnotcometolightuntil2020andthatcaserepresentsastrictinterpretationoftherequirement,therewillbeimportersfacing4yearsofdutyexposure.EveryonewouldbenefitfromthecertaintyofaCourtdecisionon

thisissuebeingprovidedinthenext12months.WhiletheABFmayconsiderthatthecurrentstateofthelawisfavourableforitandmaynotwanttoagitatethatposition,theabovetopicsrepresentincompleteareasoflawthatadduncertaintytotrade.Thismakesitharderforimporterstocomply,leadstomoredisputesandultimatelyimpedestrade.

Russell Wiese ([email protected]) and Lynne Grant ([email protected]) specialise in customs and trade law at Hunt & Hunt Lawyers.

there are a number of areas that are

currently the subject of great

uncertainty, both for the Government and the trade community

seeking to comply with the law.


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Withcontinuedvolatilityinforeignexchangemarkets,thisisanareaofconsiderableriskandopportunityforcross-bordertrade.

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AllwarehousesatCargoParkalsoofferB-Doubleaccess,regardlessoftenancy

size.

Locatedat1InternationalDrive,just3kilometresfromMelbourneAirport,CargoParkoffers46officesuitesand28warehouses,withcurrenttenantsincludingAMI,Panalpina,WholesaleLogistics,XtremeFreight,BridgestoneAustraliaandVisy.

Officetenanciesrangeinsizefrom49sqmupto900sqm,whilewarehouseareasstartfrom551sqmandgoupto3,000sqm.

Officerentsare$200/sqmandwarehouserents$85/sqm.

CargoParkownerWarringtonProperty,whichhasanextensiveindustrialpropertyportfolioacrosstheSydney,MelbourneandPerthmarkets,commencedthemulti-million-dollarupgradeinlate2016.Completionisexpectedinthelastquarterof2017.

CBRESeniorNegotiatorIndustrial&LogisticsAmandaTraficantesaidtheestate’slocation,withdirectaccesstoTullamarineFreeway,proximitytotheAirportandoppositeGladstoneParkShoppingCentre,meantitwasideallypositionedtobecomeakeyfreightandlogisticshub.

TheredevelopmentwouldestablishCargoParkasadedicated,securetransportestate,providingexceptionalloadingandunloadingaccessforsmalleraswellaslargeusers.

“WarringtonPropertyhasapproachedthisredevelopmentasanopportunitytoopenupCargoParktothefullspectrumoffreightandlogisticsoperators–providingaccesstothosehigh-endfacilitiessuchasthecentralhardstandandB-Doublewarehouseaccesstoalltenants,regardlessofsize,”saidMsTraficante.

“Thismeansprovidingbusinesseswiththeflexibilitytoexpandandcontractwithintheestate,sotenantscanadapttochangingoperationalrequirementsasneededwhileremainingonsite.

“Withmorethan45operatorsalreadyonsite,tenantsarealsoincreasinglyseeingthebenefitsofthedevelopmentofcross-businessopportunitieswithintheestate.”

$6M UPGRADE aT CaRgO PaRk OPENS DOORS FOR FREighT OPERaTORS


InNovember2016Australia’sTransportMinistersdecidedtoreformvehicleregulationssothatfullyautomatedvehicleswillbeallowedtotravelourroadsfrom2020.

Itwillbeamajordisruptiontothetransportindustry,onethatforcesvehiclebookingsystemstothenextlevel.Notonlywilllogisticssystemsbookvehiclesandlogmanifests,theywillplanandmonitortruckandrailroutesaswell.

Thenextgenerationofbookingsystemswillthereforeneedtoprovideuserswithacompleteecosystem–amorepredictableandconsistentutilisationofassetsthatmaximisestheuseofsupplychaincapacity.Automatedvehiclescarryingfreightwillbelinkedtothisbookingsystem.

Moreforeseeableandsteadyutilisationofcapacityavailablewillbepossibleinthisnewera,whereBigData,analyticsandfullyautomatedvehiclescombineononeplatform.

Inthisarticle,we’lllookattheprofoundeffectthatthiswillhaveontheportcommunity,andwhatfreightoperatorscandotoembracethechange.

Vehicle automation in Australia TheNationalTransportCommission(NTC)definesautomatedvehiclesas“vehiclesthathavesomelevelofsystemautomationwhichdonotrequireahumandriverforatleastpartofthedrivingtask.”

Therearefourcategoriesofautomation:Partial,Conditional,HighandFull.Manyofusarefamiliarwiththefirstwhenahuman-drivenvehicleself-parksormaintainsasafedistancefromothervehicleswithoutdriverintervention.

Conditionalautomationiswhereahumandrivermonitorsthevehicle’sprogressfrominsidewhilenothavingtodriveormonitortheenvironment.Iftherearebadweatherconditions,thehumandriverintervenes.

Atthenextlevel,highlyautomatedvehicleswillbeabletooperateonlimitednetworkswithoutahumandriverbutwithsomehumaninterventionincertainsituations,suchasslow-movingtrafficjams.

Fullautomationiswhenthevehiclehasnodriver,butperformsasifitwerebeingdrivenbyahuman.Thereisnohumaninputatanypoint.

Interestinglegalquestionsareraisedbythehighlyandfullyautomatedvehiclecategories.Willitbenecessaryforthesystemoperatingthevehiclestoholdadriver’slicense?‘Who’isatfaultinthecaseofanaccidentinvolvinganautonomousvehicle?

In2016,theNTCreleasedapolicypapercoveringtheseissuestitled,‘Regulatoryreformsforautomatedroadvehicles’.

The role of autonomous vehicles in logisticsAccordingtoAlexandraTornow,HeadofEMEALogisticsandIndustrialResearchatJLL,autonomousvehiclesincreaseefficiencybyreducingtrafficcongestionandaccidents,andsavingfuelthroughmoreefficientdrivingpatterns.Drivershortageswillalsobesolved,withanobvioussavingonpayroll.

Ahuman-freelogisticschainwillprobablybethefirstapplicationforautonomousroadvehiclesandrail.Afterall,distributionnetworksfollowfixedroutesscheduledatspecifictimes.Efficiencygainswillbemadebyshavingoffminutesindeliverytimebytakingalternateroutestoavoidaccidentsorcongestion.

RanjanSinha,formerHeadofShippingandLogisticsatQatarSteel,addsthatthecurrentglobaltradeslowdown–theindustryisexperiencingthelowestfiguressincetheGFC–meansportsandlogisticsfirmsneedtobemorecompetitiveandsmarteraboutthetechnologiestheyuse.

How the Internet of Things is driving the industry TheInternetofThings(IoT)isanetworkofsensorsattachedtoobjectsthatsendandreceiveinformationaboutthatobject:positionandspeedinthecaseofavehicle.VehicleautomationsystemsrelyontheinteriorandexteriorenvironmentinformationthattheIoTcarries,suchasfueltanklevelsandtrafficconditions.

SinhaidentifiestheIoTandautonomousvehiclesasdriversofanew,smarterlogisticschainfuelledby‘BigData’.ThistermdescribesthehugeamountofdataflowingthroughtheIoTandinformingtechnologieslikeautonomousvehicles.

“[BigData]canbeusedbothwithinportoperations–forexample,tohelpidentifybottlenecksandindicatewherepreventativemaintenanceisneededtominimisedowntime–andacrossthebroaderlogisticschain,”hesays.

Technological implications for freight logistics TheriseofIoTandBigDataandthesimultaneousdevelopmentofautonomousvehiclesheraldsanewdisruptiontothelogisticsindustry,oneinwhichhumansareremovedfromthehandlingandtransportoffreight.Thenewroleofmanagementandstaffwillbetochooseandmaintainthedigitalplatformonwhichtheautonomouslogisticschainruns.

Thenew,digitaldashboardwillnotbeviewedfromthedriver’sseatofatruckonanoutbackhighway,butfromamonitoringcentreinacityfaraway.DecisionsabouttheroutetakenbyacontainertruckinDubbocouldbedecidedbyadigitallogisticsplatformbasedinDublin.

Thisisanexcitingtimetobepartoftheportcommunity,andalsoatimeofgreatchange.Thenextwaveofautomatedvehiclesystemswilldependonthesystemyou’reusingnow.Visit1-StopConnectionstodiscoverhowyoucanbepartofthelogisticsrevolution.

ABOUT THE ORGANISATION1-StopisagloballyrecognisedleaderininnovatinganddeliveringintegratedsolutionstoincreaseproductivityforthePortCommunity.1-Stopiscommittedtoworkingcollaborativelywithallmembersofthecommunitytodeliverefficiencygainsforeveryone.

ENQUIRIES1300881055(Australia)+61295888900(International)Email:[email protected]:www.1-stop.com

how automated vehicles Will Transform Freight logistics in australia

By 1-STOP

AUTOMATION


ADVERTORIAL

THE POWER OF TWO – iNTuiTivE SOFTWaRE aND PERSONal SERviCE

By SCOTT CRavEN, Managing Director, Expedient Software

Thesmartesttechnologyintheworldisonlyasgoodasthepeoplewhocreate,installandsupportit.

Itmaysoundoldfashionedintoday’shightechfast-pacedworldofinternationalbusiness,buttheonlywaytoapplygreattoolswithrealeffectstillcomesdowntorelationshipsbetweenindividuals.Thisisespeciallytrueforbusinessesthathavetonavigatethecomplexitiesofoperatingacrossborders,andinthemodernglobalmarketplacetherearemanyofthem.

Everyorganisationthatactsonbehalfofimport-exportersmustcomplywiththediversecustomsbureaucraciesofdifferentcountries.Gettingitrightorwrongcanmeanthedifferencebetweensuccessandfailure.

SuccessrequiresanabilitytounderstandandapplytheintricaciesofeverythingfromintegratedandautomatedcustomsclearanceandfreightforwardingtoaccountingandCRM,workflow,trackandtrace,andbondwarehousing.

Asyou’dexpecttherearemanysoftwarepackagesavailabletohelp.Butwithouttheknowledgeanddedicationofexperts,themostcustomisablepackagescountforlittle.Especiallywhenregulationsmaybeadjustedatamoment’snotice,duetochangesofgovernment,fluctuatingexchangeratesandotherunpredictableevents.Ifyouneedarecentexample,thinkBrexit.

Everybusinessthatactsonbehalfofimport-exportersknowsthefeeling.Arippleoccurscontinentsawayand

suddenlyyourclient’svaluablecargoisstuckonthedocksandtheyarelosingmoneybytheminute.It’swhycorporatesinvestinstateoftheartfreightforwardingandcustomsclearancesoftware,andengagein-houseteamstorunit.

Ofcourse,mostbusinessesaren’tbigenoughtohavetheirownspecialistswaitinginthewings.MostbusinessesinAustralasiaareSMEs.Atthisscale,responsibilityfallsonbusinessownersthemselvesoranemployeewithoutthetimeorskillstotakeonthechallenge.Forbusinessowners,acommonoutcomeissleeplessnightsworryingaboutcustomscontrol,transportandcontainerfreightmanagementandotheradministrativenightmares.

ThisiswhereExpedientcomesin.Asyourfreightforwardingandcustomsclearanceexpert,yougetthemostversatile,predictivesoftwarepackagesavailable,andthepeaceofmindofknowingwearetheretomakesureeverythinggoessmoothly.

Byworkingpeopletopeople,Expedientgoesbeyondsoftwareperformanceineveryaspectoffreightforwardingandcustomsclearance.Theproofisinourapproach,ourscaleandourhistory.

Ourapproachisstraightforward.Transparency,compliance,scalabilityandintegrationarecornerstonesofourservice.Oursoftwareengineershaveaprovenrecordofdrivinginnovationthatcangeneratedirectcostsavingsforyou.Wefocusonautomationandstreamliningyourexistingprocessessoyoucanconcentrateonwhat’simportanttoyourbusinessandyourcustomers.

Asafamilybusinessofalmost30years,

webelieveinbuildingclientrelationshipsthatstandthetestoftime.Thesamegoesforourstaff.Expedient’ssupportmanagerrecentlycelebrated19yearswithus,andeachmemberofhisteamhasbeenherealmostaslong.Needlesstosay,theyknowwhatourcustomersneeddowntothesmallestdetail.

Detailsarevitalinfreightforwardingandcustomsclearance.Itisaperpetuallychangingareaoftradethatrequirestheperfectmixofexperienceandtechnology.

Expedient’scustomersknowweprovidethemwithsimpleandsuccinctsoftwarethatistailoredtoandintegratedwiththeirexistingprocessesandsystems.Theyalsoknowthosesameexpertswhodesigned,builtandcustom-installedthatsoftwareforthemarejustaphonecallaway,readytodeliverunrivalledcustomersupport.

Weprideourselvesongivingeverycustomertheone-on-oneattentiontheydeserve.Biggeroperatorsarespreadmuchmorethinlyandcouldneverachievethesamelevelofdedication.It’swhywehaveenduringconnectionsacrossabroadrangeofindustries,fromfoodtopharmaceuticalsandeverythinginbetween.

Ouroperationistherightsizeforanybusinessthatappreciatesthebenefitsofbuildingongoingrelationshipsbasedontrustandexperience,knowingthatpersonwon’tletyoudownbymovingon.Expedientalsoofferspredictablepricingandneverchargebasedontransactionssoourcustomersalwaysknowwheretheystand.Partneringwithussimplymakessense.


LeadingAustralianandNewZealandbeddingcompany,A.H.BeardhascomealongwaysincefounderEnochWilliamBeardstartedTheAustralianBeddingMillin1899,producinghandmadestrawpaillassesandhandtuftedhorsehairbedding.Afourth-generationfamilyownedandproudlyAustraliancompany,itsheadquartersandNSWmanufacturingfacilityinPadstowwelcomedPrimeMinisterMalcolmTurnbullpriortothelastelection.ThePrimeMinisterusedhisvisittoemphasisethat“AustralianscandoanythingincludingsellingmattressesintotheChinesemarket”Despitecompetitionfromlow-costimports,A.H.BeardhascontinuedtoexpandbothdomesticallyandinternationallythroughdistributionagreementswithstrategicpartnersintheUnitedStatesandFijiaswellasmainlandChinaandHongKong.FrombeingaleadingplayerintheAustralianandNewZealandmarkets,A.H.Beardisnowaimingtobecomeamajorworldleaderinthesleepsolutionscategory.ThemoveintoChinain2012provedamajorturningpointforthecompany.LeadingChinesemarketerandfranchiseeofhigh-endgoods,ShanghaiGreensoughtoutA.H.BeardtobecomeitssolelicenseeformainlandChina.Thefirststore,openedbyformerPrimeMinisterJohnHoward,inShanghaiin2012hasresultedintheexportbusinessdoublingeachyear.Thecurrent34storesareexpectedtototalmorethan100by2023.FiveyearsonfromtheofficialopeninginShanghai,theformerPrimeMinisterrecentlyexpressedhisprideinthesuccessofA.H.Beard:“AsaresultoffindingtherightpartnerstheirexportbusinesstomainlandChinaandHongKongcontinuestogrowbyover100%

eachyear.I’malsopleasedtoseethattheChineseconsumerrecognisesthequalityandnaturalaspectsofAustralianMademattresses,”hesaid.AndtogiveourcurrentPrimeMinisterthelastwordonthesubjectofA.H.BeardexportingtoChina:“Alittlewhileago,acontainer(wassent)everythreemonths.Nowthereisacontainereverythreedays.”WiththeChineseluxurymarketinitssight,A.H.BeardlauncheditsSignatureCollectionin2013revivingtraditionaltechniquesemployedbythecompany’soriginalmattressmastercraftsmen.Madetoorder,eachoneissewnentirelybyhandandboastslayersofpremium,Australiannaturalfibres,includingmerinowool,alpaca,mohair,andcotton.Handcraftedatthecompany’sPadstowfacilityinSydneybyadedicatedteamofhighlyskilledmastercraftsmen;theselabour-intensivemattressescantakeateamoffourpeopleuptotendaystoproduce,andretailforuptoAUD75,000.Employingmorethan400peoplewithsevenmanufacturingfacilities–sixinAustraliaandoneinNewZealand,A.H.Beardmanufactures6,000to10,000mattresseseachweek.Closerelationshipswithretailpartnershasledtoagreaterunderstandingofcustomerneeds.IthaslongbeenrecognisedthateveryretailcustomerisdifferentandA.H.Beardhavetheflexibilitytocustomiseproductofferingstomeeteachone’suniqueneeds.A.H.Beard’sbrands,includingKingKoil,Domino,HealthRest,Nature’sRest,Sleepsense,andiComfort,aredistributedthroughmorethan1000retailstoresincludingHarveyNorman,Domayne,FortyWinksandmanyindependentretailers.Inaddition,A.H.Beardmattresses

provideagoodnight’ssleepfortravellersstayinginmorethan2,500propertiesthroughoutAustraliaandNewZealand.Thejoyofsucharefreshingnight’ssleephasresultedinthisexperiencebecomingapowerfulsalesandmarketingtool.

KingKoilisA.H.Beard’smostwell-knownbrand.TodayKingKoilbedsaroundtheworldarebenchmarkedagainstA.H.Beard’sinnovativeReflexsupportsystem,recognisedbytheInternationalChiropractorsAssociationastheleadingsupporttechnology.Itstechnologicallyadvancedspringsystemsresponddirectlytotheindividualweightandshapeofthesleeper.

Thecompanyiscommittedtopushingtheenvelopeforinnovationandcompetitiveedgeandin2016,launchedAustralia’sfirstsmartbed,Sleepsense.Thisinnovativesleepsystemwasthefirstofitskindtointroducesleeptrackingtechnologyinsideamattresswithadjustablecomfort.ThistechnicallyadvancedinnovationallowscouplestoindependentlyadjustthefirmnessoneachsideoftheirmattressusingtheSleepsenseAppontheirsmartphoneoraremotecontrol.Advancedsleeptrackingalsoallowseachpersontomonitorindividualsleepqualitywithsleepdataandnightlysleepscoresdelivereddirectlytotheirsmartphone.

In2017,thecompanyaddedtoitssmartbedportfolio,withthelaunchofiComfort.Thisinnovativemattressallowssleeperstoselecttheirdesiredfirmnessoneachside,andadjustthecomfortatanytimetomeettheirchangingneeds.Integratedsleeptrackingallowsuserstonotonlymonitortheirsleepbutmakechangestotheirbedinordertoimprovetheirsleepquality.

Fulfillingitspurposeofimprovinglivesthroughbettersleep,A.H.BeardhasbeennamedtheofficialbeddingpartneroftheAustralianInstituteofSport,ensuringoureliteathletesgetthequalitysleepthatisessentialforoptimumperformance.

MEMbER PROFILE

a.h. Beard a Fourth generation Family Owned & Proudly australian CompanyAregularfeatureofAcrossBorderswillshowcaseAPSAandFTAmembersandtheirsuccessininternationaltrade.


ThiscommitmenttoimprovinglivesthroughbettersleepwasthedrivingforcebehindthecreationofA.H.Beard’s6WeekSleepChallenge.Developedinconjunctionwithleadingsleepscientist,DrCarmelHarrington,thisfreeonlinehealthandwellbeingimprovementprogramchallengesparticipantstomakebehaviouralchangestoimprovetheirsleep.

Todate,morethan60,000AustraliansandNewZealandershavetakenpartinthe6WeekSleepChallenge.Theprogramwasrecognisedforsmartthinkingatthe2013MumbrellaAwardsreceivingtheMumbrellaAwardforInsight.

A.H.Beardisalsocommittedtoreducingthecompany’simpactontheenvironment.A.H.BeardChairmanGarryBeardhasbeeninstrumentalinthecreationofamattressindustryproductstewardshipschemewhichaimstoreducethewasteimpactofmattressesattheendoftheirlife.Mattressesarethemostcommonandbulkyitemsputoutforcouncilcollection,andeachyear1.25millionendupinlandfill.

GarryBeardissodeterminedthatoldmattressesarekeptoutoflandfillandrecycledresponsiblythathehasspearheadedaglobalsearchofmattressrecyclingbest-practicetoensuretheAustralianprogramisasuccess.

ThecompanyisamemberofSoftLanding,anationalrecyclingsocialenterprisedesignedtoincreaseresourcerecoveryanddiversionofwastefromlandfilltominimiseenvironmentalhealthandsafetyimpactsofendoflifemattresses.Morethan1.6millionaredisposedofeachyeartolandfilltakingup1.2millionsq.metres.

AnalysisundertakenbySoftLandingfoundmattressescancontainaround15.5kgsteel,3kgfoam,2kgstextile,14kgtimber,3kghusk,7kgquiltingandupto30kgoflatex.

SoftLandingseparatestheseelementsforrecycling,intheprocessdivertingthousandsoftonnesofwastefromlandfilleachyear.Steelspringsaretransformedintosteelroofs,foamandlatexintocarpetunderlayandtimberslatsintomulch.

Aswellasitsenvironmentalachievements,thisprogrammakesapositivedifferencetolocalcommunities.SoftLandingemploys75paidstaff

and35volunteersandhas15truckscollectingfromcouncils,hotelsandprivatehomes,providingjobsandtraineeshipsforpeopleinN.S.W.,VictoriaandACT.GarryBeardjoinedhisfatherinthebusinessinthelate‘70’swithbrother,Allynjoiningintheearly‘90’s.Duringthelasttwodecades,GarryandAllynhaveembarkedonaperiodofnationalandinternationalgrowth.ThisexpansionincludedtheestablishmentofamanufacturingfacilityinAuckland,NewZealandin1996.Onhomesoil,theBeardsachievedtheirobjectiveofnationaldistributionviaastringofacquisitions.In1997,A.H.BeardacquiredSuparestbeddinginVictoriaandTasmania,cementingthecompany’smanufacturinganddistributionoperationinsouthernAustralia.In1999,theypurchasedDomino-a90-year-oldSydney-basedbeddingfirm.In2008,A.H.BeardacquiredSouthAustralianbasedSleep-HavenBeddingcompletinganationaloperationsanddistributionnetwork.Along-timememberofFamilyBusinessAustralia,A.H.BeardwasnamedFamilyBusinessoftheYearin1999andin2012,markingits113thyearinbusiness,A.H.BeardwasinductedintotheFamilyBusinessAustraliaHallofFame.EnochBeard’slegacycontinues,withmembersofthefifthgenerationofthe

Beardfamilycurrentlyworkingwithinthebusiness.Theysharetheirancestors’passionforcreatingqualitysleepproductsthattransformlivesandrelishtheopportunityandresponsibilitythatcomeswithbuildingonthesuccessofA.H.Beardforfuturegenerations.

A.H.Beardboastsateamofdedicated,highlyskilledpeople,manyofwhomaresecondgenerationmattressmakers.Onelong-termemployeestartedasa15-year-oldapprentice,followinginthefootstepsofhisfatherwhoworkedforthecompanyfor43years.Thisisacommontheme,withnumerousfamilieshavingmultiplemembersworkingwithinthebusiness.It’sthissenseoffamilyandrespectthathavecontributedtotheorganisation’slongevityandsuccess.

Ahand-pickedteamofmanagementandmarketingprofessionalsledbyChiefExecutiveOfficer,TonyPearson,whojoinedthecompanylate2016,ensuresthecompany’songoinggrowth.

TonyhasworkedasbothaconsultantandCEOacrosstheIT,Telco,Retail,Hospitality,FMCGandGovernmentsectorswherehisremithasbeentorealignbusinessobjectivestodriveimprovedoutcomesfromfrontlinetoboardroom.

Thecompany’ssightsarenowsetontheworldstagewithmoreinnovationsinthepipeline.TheoverwhelminglypositivereceptionbytheChinesemarkethashighlightedthethirstforsuperiorqualitymattressesonaninternationalscale.


Freight&TradeAlliance(FTA)andtheAustralianPeakShippersAssociation(APSA)wereprivilegedtobeinvitedtotheofficiallaunchoftheMoorebankLogisticsPark(MLP).

MauriceJames(ManagingDirector,Qube)providedbackgroundtotheinitiativeandoutlineditscapacity/servicesbeforefacilitatingasitetouroftheimpressivesitewhichwhencompleted,willbethelargestintermodalfreightprecinctinAustralia.

ThedevelopmentwillconsistoftheconstructionandoperationofanIMEXterminalandaninterstateterminalwithcapacitytotransportupto1.05millionTEU(twentyfootequivalentunits)ayearofimport-exportfreightandanother0.5millionTEUofinterstatefreightperyear.

MLPwillhaverelatedlogisticsactivitiesincluding850,000squaremetresofhighspecificationwarehousing,aswellasauxiliaryservicesincludingretailand

serviceofferings.

ArailconnectiontotheSouthernSydneyFreightLine(SSFL)willbebuiltthathasdirectaccesstothepark,withtheM5andM7arterialroadsminutesawayprovidingacompletesupplychainsolutiondrivingsavingsintimeandcostsforonsitetenants.

Where to relocate in Sydney - should you take advantage of intermodals?Freightforwarders,customsbrokersandtransportoperatorsareincreasinglybeingforcedoutoftheMascot,Botanyandsurroundingsuburbsasresidentialdevelopmenttakesoverazonethatwasoncethecommercialhubofinternationaltrade.Importersandexportersarealsolookingatmanufacturing,staging,warehousinganddistributioncentres.

TransportforNSWandNSWPortsarefacilitatingrail/stevedoreinterfacereformsandaresupportingtheemergenceofintermodalterminals

acrossthewiderSydneymetropolitanareatomaximiseportthroughputandminimiseportprecinctcongestion.

RelocationtotheNorth,SouthandWesternsuburbs-whereistheideallongtermlocationforyourbusiness?

FTAandAPSAmembersareinvitedtoanExecutiveForumthatwearehostinginpartnershipwithCBREandsponsoredbyNSWPorts.ExpertsfromCBREwillprovideadviceonkeyissueswhenconsideringleaseorpropertypurchasingoptions.

Heardirectfromtheintermodalterminalsandrailoperatorsabouttheirservicesandbenefitsaregoingtobeavailableateachlocation-confirmedspeakersincludeMickCronin-NSWPorts;MauriceJames–Qube;AndrewAdam-PacificNationalandHansAnneveldt-Aurizon.

15 August 2017 - 8am breakfast through to 12.30pm CBRE (Level 21, 363 George St Sydney)Members $55 / Non-members $110 – limited places with registrations on a “first-in basis” – register now at www.FTAlliance.com.au What are we doing in Melbourne?FTA,APSAandtheAustralasianRailwayAssociation(ARA)haveledthechargeinVictoriatodramaticallyincreasetherailmodeshare,withthecommencementoftheRailAccessStrategyprocesscommencingsoon,drivenbythePortofMelbourneRailUsersGroupandstrongsupportfromthePortofMelbourne.

Victoriahasanumberofidealsitesforintermodalfacilities,includingSalta’sinlandports(DandenongSouth&Altona),theDPWASomertoninlandterminalfacilityandothers.WeapplaudtheactivityinNSWandnowencouragetheVictorianGovernmentandnewportleaseholdertosupportsimilarinitiativesinVictoria.

Moorebank logistics ParkBy Paul Zalai & TRaviS BROOkS-gaRRETT, FTa/aPSa

INTERMODAL REFORM

Paul Zalai FTA/APSA and Maurice James Managing Director, Qube


www.containerchain.com

The single platform for a multifaceted industryContainerchain provides a single platform for optimising the movement of containers from port to door and back again. Connecting a community of container depots, road transporters, terminals, shipping lines, warehouses and cargo owners, Containerchain solutions deliver predictability and operational synchronisation across the supply chain. Features include real-time paperless tracking and information exchange, process re-engineering and automation, and facility and asset optimisation - as well as total container movement visibility for more proactive planning.

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RecentlytherehavebeenanumberofexamplesofgoodscontainingasbestosenteringAustralia.AsbestoshasbeenaprohibitiveimportsinceDecember2003.

Licencedcustomsbrokers(LCBs)musthaveanunderstandingofAustralia’simportprohibitions.

TheAustralianBorderForce(ABF)expectsimporterstoundertakeadequateassurancemeasurestodemonstratethatthegoodstheyareimportingthatareknowntobeatriskofcontainingasbestos,orgoodssuppliedfromcountrieswithasbestosproducingindustries,donotcontainasbestos.

Due DiligenceImportersandLCBsmustbeawareofAustralia’sasbestosimportprohibition.BeforegoodsareimportedtoAustralia,importersmusthaveadequateassurancethatthegoodsbeingimporteddonotcontainasbestos.

SUPPORTING DOCUMENTATION REQUIREDThenatureandlevelofinformationwithinthesupportingdocumentationmayprovideadequateassurancedependingontheriskofthegoodscontainingasbestos.Severaltypesofdocumentationmaybenecessarytodemonstratesufficientlevelofassurance.Anon-exhaustivelistofexamplesofsupportingdocumentationisprovidedbelow:

•Declarationsfromimportersand/orsupplierswhichstatethatthegoodshavenilasbestoscontent

•Documentationoutliningthelevelofassurancestakenthroughoutthesupplychain

•Invoicesdemonstratingthesupplierofthegoods

•Informationaboutthesupplychainandpossiblequalityassuranceprocessinplace

•IllustrativeDescriptiveMaterial

•Ingredientlists

•Testcertificateorlaboratoryreport

•MaterialSafetyDatasheets

Solelyrelyingonadeclarationthatstatesthegoodshavenilasbestoscontentfromanimporterand/orsuppliermaynotprovideadequateassurance.

TocomplywiththeserequirementsmaywellbeoutsideofyourfieldofexpertiseandyoushouldseekassistancefromacompanythatspecialisesinAsbestosImportSurveyssuchasAARMS.(www.aarms.com.au).

SimplyprovidingaChinesecertificate,oraletterfromaChinesesupplierwillnotbeconsideredadequate.

Ifyourclientisaregularimporterofgoods,youshouldalsoconsideraRiskAssessmentprogramthatprovidestheABFwithanassuranceofthesupplychain.TheseprocessesprovidedbyAARMSwillensureyourclientsshipmentsareprocessedthroughwithoutanyuntimelydelays.

aSBESTOS iMPORTS

ADVERTORIAL


TofindoutmoreaboutadvertisinginAcrossBordersorhowtobecomeanAPSA/FTAsponsor,pleaserefertowww.FTAlliance.com.auorcontactusatinfo@FTAlliance.com.au

SPONSORSTheAustralianPeakShippersAssociation(APSA)andFreight&TradeAlliance(FTA)would

liketoacknowledgethefollowingsponsorsfortheirongoingsupportoftheAlliance.

MAJOR SPONSORS

DUAL APSA/FTA SPONSORS

APSA SPONSORS

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SCREENING REQUIREMENTS FOR US-BOUND AIR CARGO AFTER 1 JULY 2017After 1 July 2017, all US-bound air cargo exports will need to be examined at piece level or originate from a Known Consignor. These requirements have been imposed on airlines by the US Government. The Australian Government has been working with Australian businesses to help them comply with these US requirements.

HOW CAN EXPORTERS COMPLY WITH THE US REQUIREMENTS? Businesses exporting to the US by air have two options to meet the US requirements:

1. Using an Australian Government-approved freight agent who can examine US-bound air cargo. A list of these agents can be viewed on the department’s webpage listed below.

2. Being approved as a Known Consignor to secure air cargo at the point of origin in order to minimise potential delays and costs. You can begin the process of being approved as a Known Consignor on the department’s webpage listed below.

HOW CAN FREIGHT FORWARDERS COMPLY WITH THE US REQUIREMENTS? Freight forwarders will need to arrange to examine all US-bound air cargo at piece level if their customer is not a Known Consignor.

WHAT DOES PIECE LEVEL MEAN? Piece-level means that each individual box, carton or other item in a shipment is examined by an X-ray machine or metal detector, depending on the nature of the item being examined, before it is loaded onto an aircraft.

WHAT IF I HAVEN’T SECURED A SOLUTION FOR MY US-BOUND AIR CARGO?If you are an exporter who has not yet secured a solution for your US-bound air cargo, a list of freight agents who can examine cargo at a piece level is available on the department’s webpage listed below.If your freight agent is not on this list, they will not be able to examine cargo at piece level.

If you are a freight forwarder, exporters of US-bound air cargo who have not secured a solution may need your help. It is your responsibility to put in place contingency arrangements to avoid disruption to your customers’ business.

If you are not examining US-bound air cargo yourself, a list of approved freight agents can be found on the department’s webpage listed below.

WHERE CAN I LEARN MORE?

A D V E R T I S E M E N T

W https://infrastructure.gov.au/security/air-cargo/us-bound-air-cargo-security-arrangements.aspx

E [email protected]!T 1300 791 581 (9am to 5pm weekdays)

02 9525 9500compliantcustoms.com.au

It’s ok. We understand the challenges you face with the ever-changing customs landscape. This is why over 100 Australian freight forwarders choose to outsource this important process to a team of dedicated professionals that ease the burden and leave you to do what you do well.

Customs clearance is all we do. Thanks to our super-responsive customer service, top-notch consultants and business-friendly operating hours, we’re proud to be known as one of the most respected customs brokers in Australia.

We know it’s not your favourite job, but it’s always been ours!

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CUSTOMS CLEARANCE GETTING YOU DOWN?

>05;,9 %25'(56...winter 2017 i across borders i3 new zealand. rcep has the potential to...

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